S&P downgrades rating on Newmont Mining
NEW YORK (AP) — Standard & Poor's Ratings Services lowered its ratings on Newmont Mining Corp. on Friday, citing the impact of lower gold prices on its business.
The rating agency lowered its ratings one notch to "BBB" from "BBB+." S&P said the outlook is stable, as it expects the company will be able to maintain credit measures that are consistent with the investment-grade rating through cost reductions and revised spending .
Gold prices peaked in August 2011, and have declined sharply in the past year. They took another dip this week as the dollar rose and traders anticipated that the Federal Reserve may reduce its economic stimulus sooner than some had expected. Gold is down more than 20 percent so far this year and is on track to have its first annual loss since 2000.
Newmont Mining, based in Denver, reported Thursday that its third-quarter net income rose on cost-cutting and improved production in some markets. But its revenue fell 20 percent, due largely to declines in gold and copper prices.
Shares of the company fell $1.28, or 4.7 percent, to close at $25.98 Friday. The stock is down 44 percent since the start of the year.