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S&P cuts Murray notes to B
Standard & Poor's said it lowered Murray Energy Corp.'s (B/stable) second-lien secured notes due 2015 to B from B+. The recovery rating was revised to 3 from 2, indicating expectation of 50% to 70% recovery.
Proceeds will be used for general corporate purposes, including the expansion of production capacity and preparation plant processing capacity at certain mining operations.
"The lower issue-level rating and revised recovery rating reflect the increased level of second-lien debt following the company's proposal of a $150 million add-on to its existing $540 million second-lien secured notes due 2015," S&P analyst Maurice Austin said in a statement.
Ratings reflect the company's vulnerable business risk profile and aggressive financial risk profile, the agency said.
Ratings also reflect its relatively small size, lack of operating diversity, customer concentration and high debt levels, the agency noted.
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