Moody's gives Baa3 to Pan American Silver

Moody's Investors Service said it assigned an initial Baa3 long-tern issuer rating to Pan American Silver Corp. Moody's also affirmed Yamana Gold, Inc.'s Baa3 senior unsecured ratings.

Pan American closed its acquisition on Yamana on March 31. It now guarantees Yamana’s $300 million of senior unsecured notes due in 2027 and its $500 million of unsecured notes due in 2031.

“Moody's estimates Pan American will generate annual revenue of about $2.5 billion in 2023 and EBITDA (as adjusted by Moody's) of about $730 million. We expect Moody's-adjusted debt to reach about $1.2 billion in 2023, but decline to about $1 billion in 2024, assuming partial repayment of the credit facility borrowings. As a result, we anticipate that adjusted leverage will reach 1.6x in 2023, then fall to about 1.4x in 2024, following the restart and ramp-up the Escobal mine,” the agency said in a statement.

The outlook is stable.

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