S&P: Massey on negative watch

Standard & Poor's said it placed its ratings on Massey Energy Co., including the BB corporate credit rating, on CreditWatch with negative implications.

Placed on negative watch are Massey Energy's BB rated 6.625% senior unsecured notes and B+ rated 6.95% senior unsecured notes and 4.75% senior unsecured convertible notes.

S&P said that despite favorable coal markets and the expected higher average realized prices Massey has contracted for 2004, the company's financial performance may not improve to a level commensurate with the existing rating. In addition, S&P said it is concerned about Massey's liquidity levels, which are expected to decline further during the first half of 2004.

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