Moody’s cuts SunCoke, loan, notes

Moody's Investors Service said it downgraded SunCoke Energy, Inc.’s corporate family rating to B2 from Ba3, probability of default rating to B2-PD from Ba3-PD, secured credit facility to B3 from Ba1 and senior unsecured notes due 2019 to Caa1 from B1.

The agency also downgraded the ratings on senior unsecured notes of SunCoke Energy Partners, LP to B3 from B1.

The speculative grade liquidity rating was changed to SGL-3 from SGL-2.

The outlook is stable.

At the same time, Moody's withdrew the corporate family rating, probability of default rating and speculative grade liquidity rating at SunCoke Energy Partners due to the substantial majority of operating assets having been dropped down to that level, with only a small proportion of debt still outstanding at SunCoke level.

The two entities are now assessed on a consolidated basis, with SunCoke Energy Partners’ senior unsecured notes rated as noted.

Moody’s said the downgrade reflects the continuing headwinds in the company's end markets, as steel makers continue to idle operations and cut back production. The company's EBITDA declined in 2015 on the back of declining sales in the spot market and above contract maximums, as well as operating issues at Indiana Harbor and the reorganization of Haverhill Chemicals LLC facility, which more than offset the $21 million contribution from the Convent Marine Terminal acquired in August of 2015.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.