The Perenti Global Ltd (ASX: PRN) share price was up 0.4% at the time of writing to $1.27. This came after the company announced it had received a BB rating from Fitch and confirmed a notes issue to refinance existing outstanding notes.
What was announced?
Fitch assigned Perenti a long-term issuer default rating of BB with a positive outlook. This was based on the credit rating agency's assessment of Perenti as a global mining services contractor and its financial policy, which Perenti stated was prudent. A long term issuer default rating is based on the perceived likelihood that an issuer will default on their outstanding financial obligations.
Perenti chief financial officer Peter Bryant said the BB rating demonstrated the group's solid credit profile and robust outlook.
This was the company's inaugural rating by Fitch. Perenti is also rated BB by Standard and Poors and Ba2 by Moody's.
Also today, Perenti announced it would issue $350 million in guaranteed senior unsecured notes in the United States. The proceeds would be used to redeem $350 million of 6.625% senior secured notes due in May 2022.
Moody's, which matched its existing Ba2 rating with a stable outlook for the notes issue with Perenti's rating overall, commented:
Perenti's credit profile reflects the company's improved business profile with the increased scale and diversification following the acquisition of Barminco. Perenti has a strong position in providing integrated mining services in its target markets and and a demonstrated ability to execute contracts with a diversified range of counterparties.
About the Perenti share price
Perenti provides services for surface and underground mining in Australia and Africa. It also engages in equipment hire, parts sales, service exchange and maintenance services. It has been listed on the ASX since 1994.
In August, Perenti announced record revenue of $2.04 billion for the year to 30 June 2020, up 3.8%. Earnings before interest, tax, depreciation and amortisation (EBITDA) were $443.8 million, up 6.8%. Net profit after tax in the year to 30 June, 2020 was $27.6 million.
The Perenti share price is up 182.22% since its 52-week low of 45 cents. However, it is down 20.63% since the beginning of the year. The Perenti share price is down 44.05% since this time last year.
