Moody’s downgrades AngloGold, affects its $1.7b debt

AngloGold’s downgrade by Moody’s will affect the miner’s approximately $1.75 billion debt.

The ratings agency on July 12, 2013 downgraded AngloGold’s senior unsecured debt obligations from Baa2 to Baa3, placing the miner on negative outlook.

All three of AngloGold’s debt bond – the $700 million, $750 million and $300 million senior unsecured regular bonds were all downgraded to Baa3 from Baa2.

“…downgrade to Baa3 from Baa2 primarily reflects the increased risk that AGA will no longer be able to sustain its credit metrics such that they are commensurate with a Baa2 rating under our current Moody’s forecast assumptions,” Moody’s said in a statement.

Moody’s indicated that there is a likehood of pressure on AngloGold’s liquidity profile for the next 12 months and “place stress on the financial covenants contained in the company’s banking facilities”.

By Ekow Quandzie