St Barbara Limited
(ASX:SBM) says it has been notified by Standard and Poor’s that the ratings agency has lifted the gold miners rating from B to B+ with a stable outlook.
Standard and Poor’s announcement noted that “the upgrade reflects the improvement in St Barbara’s balance sheet due to continued debt reduction which the company funded through strong cash flow generation”.
St Barbara announced back in November that it was repurchasing US$33 million in senior secured notes and it looked to become net-cash positive.
Once the company completes its debt repayment later this month it will have only US$20 of US notes outstanding and its net cash position will exceed A$40 million.
St Barbara reported a net profit of $169.39 million at 30 June 2016.
