Moody’s cuts Warrior Met Coal SGL

Moody’s Investors Service said it affirmed the ratings of Warrior Met Coal, Inc., including the corporate family rating of B3, probability of default rating of B3-PD and the senior secured notes rating of B3.

The agency also changed the speculative grade liquidity rating to SGL-3 from SGL-2.

The outlook is stable.

Moody’s said the action follows the company's announcement that it will make a $350 million cash distribution to its shareholders, financed by cash on hand plus a $125 million add-on to the company's existing senior secured notes due 2024.

“The affirmation acknowledges the company's strong operating performance and sufficient liquidity to support the transaction, as well as our expectation that leverage will remain within acceptable levels for the rating,” the agency said in a news release.

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