Moody’s cuts Murray Energy

Moody’s Investors Service said it downgraded the ratings of Murray Energy Corp., including the corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3- PD and the rating on the first-lien term loan to B3 from B2.

The rating on the second-lien debt was affirmed Caa2.

The outlook is stable.

The agency said the downgrade reflects the higher risks to company's credit metrics and liquidity profile over the next 18 months as a result of the Chapter 11 filing by a key customer, as well as secular challenges facing the coal industry.

The ratings also reflect the potential for declining average realizations beyond 2018, coupled with relatively low margin potential of some of the company's mines, Moody’s said.

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