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 $2.2billion (R28.08bn). On Monday, it said it resolved to provide $200million to its indirect wholly-owned subsidiary, Thor US Holdco, to capitalise Stillwater.