S&P reviews Walter Energy

Standard & Poor's said it placed Walter Energy Inc.'s BB- corporate credit rating on CreditWatch with developing implications.

The CreditWatch listing follows news that Walter has submitted a proposal to acquire the outstanding common shares of Western Coal Corp. for C$11.50 each, representing a value of about $3.2 billion.

Key factors of the analysis would include a review of the strategic plans for the combined entity and the ultimate form of financing, S&P said.

The acquisition of Western Coal would benefit Walter's business risk profile, which has limited operating diversity, the agency said.

Despite the potential improvements to the business risk profile, the manner of financing a transaction of this size could have a material impact on the company's overall financial risk profile, S&P added.

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