S&P lowers New World Resources

Standard & Poor's said it lowered the long-term corporate credit rating on New World Resources NV to CCC from B-.

S&P also said it lowered the rating on New World's senior secured notes to CCC from B- and the ratings on its senior unsecured notes to CC from CCC.

The outlook is negative.

The downgrades follow the recent drop in the price of coking coal and the company's agreement on thermal coal prices for 2014, S&P said.

These prices may result in the company generating material negative free cash flow in 2014, consuming most of the company's current outstanding cash, the agency said.

A default or the introduction of a distressed exchange offer is possible later this year, S&P said.

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