Goldcorp (TSE:G) BBB Rating Reaffirmed by Fitch

Fitch Ratings reaffirmed their BBB ratings on Goldcorp (TSE:G) (NYSE:GG), with their Issuer Default Rating, $862.5 million senior unsecured convertible notes, and $1.5 billion senior unsecured revolving credit facility, all retaining a BBB rating.

Goldcorp ratings are largely reflected in their mining locations, which are considered as being low in geopolitical risk; their strong project pipeline and large reserves, and their low-cost production, all of which produce the solid rating from Fitch.

A press release stated, "Fitch does not expect Total debt/EBITDA to exceed 2 times (x) when borrowing is at its peak and generally expects leverage to be below 1.5x. Should internal cash generation fall behind expectations, Fitch expects expenditures to be cut or to be supported by new equity issuance or asset sales."

Goldcorp guidance for gold production for 2010 is 2.6 million at a cash cost average of $350 an ounce.