S&P revises Drummond to negative

Standard & Poor's said it affirmed its BB corporate credit rating on Drummond Co., Inc. and revised the outlook to negative from stable.

"We expect that Drummond's credit measures will remain weaker than anticipated due to a combination of depressed thermal and metallurgical (met) coal prices and lower production volumes for 2015 and 2016," S&P credit analyst Vania Dimova said in a news release.

The negative outlook reflects our expectation that Drummond's credit measures will remain between 3 times and 4 times in the next 12 months due to the night rail service restriction, which lowered Colombian production and sales levels in 2015. Challenges remain in the seaborne thermal and met coal market, which put pressure on Drummond's cash flow.

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