S&P: Barrick Gold view to positive

S&P said it revised the outlook on Barrick Gold Corp. to positive from stable.

The agency also said it affirmed the company’s BBB- long-term corporate credit and issue-level ratings and A-3 short-term rating on its commercial paper.

The outlook revision follows the increase in gold-price assumptions through 2018, S&P said, and also considers Barrick's improving cost profile and commitment to future de-leveraging.

The company will generate credit measures that are considered strong for the current rating over the next two years, including adjusted debt-to-EBITDA in the mid-2x range, S&P said.

The outlook also takes into account an expectation for volatility in gold prices, which are not far removed from cycle-lows at year-end 2015, the agency added.

But the agency said it believes the continuing favorable gold-price environment and improvement in Barrick's cost position should translate into free cash flow and debt repayment for the company above previous expectations.

S&P also said it believes there is an increased likelihood that Barrick will achieve a stronger financial risk profile and one-notch upgrade on the company within the next one- to two-years.

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