- Iamgold's (NYSE:IAG) credit rating is downgraded further into junk territory, to B from B+, at Standard & Poor's, which cuts its average gold price assumption for the next two years to US$1,150/oz. from $1,200.
- S&P says it expects IAG’s adjusted debt-to-EBITDA ratio will remain above 5x, which could further cramp the company’s ability to borrow money.
- The ratings agency says that while its reduced gold price forecast is modest, IAG’s credit ratios are highly sensitive to small changes in gold prices, particularly on the downside.
- S&P also notes IAG has “limited operating diversity” and currently relies on two mines - Essakane and Rosebel - for the vast majority of its production and earnings.