S&P cuts Alpha Natural, notes

Standard & Poor's said it lowered its ratings on Alpha Natural Resources Inc.

The agency said it lowered the corporate credit rating to BB- from BB. The outlook is stable.

The agency said it also lowered its rating on Alpha's $1.5 billion senior notes due 2019 and 2021 to BB- from BB, while maintaining the recovery rating at 3.

In addition, the agency said it lowered its rating on Alpha's 2.375% convertible notes due 2015 to B from B+ while maintaining the recovery rating at 6.

At the same time, the agency said it affirmed the BB- issue-level rating on subsidiary Massey Energy Co.'s 3.25% convertible senior notes due 2015 and revised the recovery rating to 4, indicating an expectation for average recovery in the event of a payment default.

"The downgrade reflects our expectation that 2012 EBITDA will decline to about $1 billion, contrasted with our previous expectations of about $1.3 billion, because of a sharp cyclical downturn in domestic coal demand," said S&P credit analyst Maurice Austin in a news release.

© 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.