Moody's rates Massey convert Ba3

Moody's Investors Service said it assigned a Ba3 rating to Massey Energy Co.'s $150 million convertible senior notes due 2024 and assigned Massey Energy an issuer rating of B2. The senior implied rating is affirmed at Ba3.

The outlook remains stable.

Moody's said the Ba3 senior unsecured rating reflects Massey's 2.2 billion ton coal reserve and strong competitive position in the Central Appalachian coal region, its favorable customer relationships and contracted tonnage for 2004 and 2005, and, compared to its coal industry peers, its relatively low level of workers' compensation, black lung, OPEB and pension liabilities.

The rating also reflects Massey's consistent incurrence of operating losses, excluding other income, over the past several years due both to geologic and operating difficulties, which have continued to impact the company's productivity targets, and to higher medical and workers compensation costs. The company also continues to face litigation and environmental challenges.

In related rating actions, Moody's affirmed the ratings on Massey's other rated debt as follows: $360 million of 6.625% guaranteed senior global notes due Nov. 15, 2010 at Ba3, $283 million of 6.95% guaranteed senior unsecured notes due March 1, 2007 at B1, and $132 million of 4.75% guaranteed senior unsecured convertible notes due May 15, 2023 at B1.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.