Sibanye gets a rat­ings boost

The Star Early Edition - - BUSINESS REPORT -

SIBANYE Gold re­ceived af­fir­ma­tive credit rat­ings from two credit-rat­ing agen­cies yes­ter­day. Sibanye re­ceived a Ba2 rat­ing from Moody’s In­vestors Ser­vice with a sta­ble out­look, and also re­ceived a B+ rat­ing with a pos­i­tive out­look from S&P’s Global. Moody’s said the rat­ing re­flected the com­pany’s solid busi­ness pro­file un­der­pinned by di­ver­si­fied metal pro­duc­tion rev­enues, as well as its track record of set­ting and stick­ing to con­ser­va­tive fi­nan­cial poli­cies. The rat­ing as­sumes Sibanye will “delever­age as planned, fol­low­ing the ad­di­tion of the Still­wa­ter ac­qui­si­tion debt and the suc­cess­ful in­te­gra­tion of the new min­ing as­sets”. S&P’s said its out­look re­flected its view that Sibanye will “gen­er­ate pos­i­tive dis­cre­tionary cash flow af­ter the Still­wa­ter ac­qui­si­tion that should en­able it to grad­u­ally re­duce lev­er­age in line with its stated fi­nan­cial pol­icy”. Last month, Sibanye com­pleted the ac­qui­si­tion of Still­wa­ter, the US’s sole provider of plat­inum and pal­la­dium, for $2.2 bil­lion (R28.08bn). On Monday, it said it re­solved to pro­vide $200 mil­lion to its in­di­rect wholly-owned sub­sidiary, Thor US Holdco, to cap­i­talise Still­wa­ter. – ANA

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