Moody's rates Walter loans B1

Moody's Investors Service said it assigned a B1 rating (LGD3, 31%) to Walter Energy, Inc.'s proposed $2.7 billion senior secured first-lien credit facility comprising a $375 million revolving credit facility due 2016, $600 million term loan A due 2016 and a $1.75 billion term loan B due 2018.

Moody's also confirmed the company's B1 corporate family rating and B2 probability-of-default rating.

This action concludes the review begun following Walter's announcement on Dec. 3 that it intended to acquire Western Coal Corp. for $3.3 billion.

The outlook is positive, in recognition of the strong operating prospects of the post-acquisition business, according to the agency.

Moody's said confirmed the corporate family rating and revised the outlook to positive to reflect the view that the acquisition of Western would significantly improve Walter's business profile by increasing scale, operating diversity, geographic diversity and providing access to new export markets for metallurgical coal.

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