[miningmx.com] – THE world’s major gold mining firms could face credit downgrades if the price of gold stays below $1,300 per ounce for more than two quarters.
“If prices below $1,300 are sustained for more than two quarters, without significant changes to spending, I would expect we could see ratings downgrades,” Donald Marleau, an analyst at Standard & Poor’s Ratings Services, told the Wall Street Journal.
The recent plunge in the price of gold is exposing the large debt loads that big gold miners, such as Barrick Gold Corporation took on during the boom years, the Wall Street Journal said.
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