Moody's: Walter Energy unchanged

Moody's Investors Service said that Walter Energy, Inc.'s recent amendment to its credit agreement, which increases the threshold levels for the company's total leverage ratio, improves its liquidity profile and therefore is a credit positive.

However, the current B1 rating and stable outlook remain unchanged at this time.

Moody's said it previously cited the company's tightening headroom under the leverage covenant as a risk for the company.

This amendment increases covenant headroom, better positioning the company to be able to handle some level of unforeseen production delays or softness in metallurgical coal pricing over the coming quarters, the agency said.

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