S&P affirms Drummond

Standard & Poor's said it affirmed the BB- corporate credit rating on Drummond Co. Inc.

The outlook is stable.

S&P noted that the ratings on Drummond reflect the company's limited operating diversity, its substantial exposure to the risks of operating in Colombia, where it derives most of its cash flow, aggressive growth spending plans, its relatively small but growing production base and weak financial measures.

Still, the company maintains a relatively low-cost position compared with eastern U.S. coal companies, possesses a strategic location as a seaborne coal exporter, has a large reserve base and maintains adequate liquidity, the agency said.

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