Moody’s raises Murray Energy, loans

Moody's Investors Service said it upgraded the ratings of Murray Energy Corp., including the corporate family rating to B3 from Caa2, probability of default rating to B3-PD from Caa2- PD, first-lien term loan to B2 from Caa1 and second-lien debt to Caa2 from Caa3.

This concludes the review initiated in March, in response to the announcement that the company will contribute about $60 million in cash to Foresight Energy LLC (B3, stable) in the form of common equity, and exercise its option to acquire an additional 46% voting interest in Foresight Energy GP LLC, thereby increasing its voting interest to 80%.

Moody’s said the ratings reflect its expectation that Murray Energy will exercise substantial control over Foresight's dividend distribution policies, because following the increase in voting interest, the company can now appoint all but one of Foresight's board members.

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