S&P ups Massey Energy outlook to positive

Standard & Poor's said it revised its rating outlook on Massey Energy Co. to positive from stable while affirming its B+ corporate credit rating.

The outlook revision reflects steady improvement in the company's operating performance over the past several quarters due to a strong market for metallurgical and steam coal, which has resulted in higher prices as well as a significant rise in metallurgical coal shipments, the agency added.

S&P noted that it expects similarly strong operating performance in the near term given our expectation that positive coal industry fundamentals will continue.

According to the agency, the ratings on Massey reflect its limited geographic diversity, difficult mining conditions in Central Appalachia, high cost position and somewhat aggressive financial policy.

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