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Moody's downgrades Arch Resources
Moody's Investors Service said downgraded Arch Resources, Inc.'s corporate family rating to B1 from Ba3 and senior secured ratings to B1 from Ba3.
"Arch is committed to completing the Leer South project on schedule. Given the margin compression and diminished expected cash flow generation following the global outbreaks of coronavirus, Moody's expects that the company will have much higher net debt balances when the project is completed," said Ben Nelson, a Moody's vice president, senior credit officer and lead analyst for Arch Resources, in a press release.
Moody’s also changed the outlook to negative from stable. “The negative outlook reflects the risks and potential acceleration of cash burn associated with pursuing the Leer South project during a period of compressed earnings and cash flow generation due to weak industry conditions,” Moody’s said.
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