S&P slashes Murray Energy

S&P said it downgraded Murray Energy Corp. to SD from CCC, citing missed interest and principal payments and a forbearance pact with lenders.

“The downgrade follows Murray’s announcement that it has elected not to pay amortization and interest payments on its superpriority term loan B-2 and B-3 due on Sept. 30, 2019. The company has entered into forbearance agreements with superpriority term loan and ABL and FILO credit facilities lenders until Oct. 14, 2019, under which the debt holders will not enforce any of the rights and remedies available under the credit agreements despite the missed interest and principal payments,” said S&P in a press release.

S&P also lowered the issue-level ratings on Murray’s $1.6 billion B-2 and $158 million B-3 outstanding first-lien term loans due in 2022 to D from CCC.

The D rating on the $295 million outstanding second-lien notes due in 2021 and the $479 million outstanding 1.5-lien senior notes due in 2024 is unchanged.

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