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Moody’s downgrades Contura Energy, says outlook remains negative

first_img FacebookTwitterLinkedInEmailPrint分享S&P Global Market Intelligence ($):Moody’s downgraded Contura Energy Inc.’s corporate family rating to B3 from B2 and revised its outlook on the company to negative from stable, saying it expects Contura will experience significant margin compression in 2020 as a result of decreased metallurgical coal prices and higher cash burn.The rating agency also lowered the NYSE-listed coal miner’s senior secured term loan rating to Caa1 from B3, and its speculative grade liquidity rating to SGL-3 from SGL-2, in a Feb. 27 note.Moody’s estimated Contura Energy’s “management-defined” EBITDA would fall to a range of about $125 million to $175 million in 2020, compared to $335 million in 2018 and $264 million for the first nine months of 2019.Contura Energy’s thermal coal platform will likely generate modest losses in 2020 as the company also faces potential headwinds due to variations in metallurgical coal prices, while the negative outlook also reflects expectations for cash consumption in 2020, Moody’s said.“An increasing portion of the global investment community is reducing or eliminating exposure to the coal industry with greater emphasis on moving away from thermal coal,” Moody’s said.Moody’s said it expects 2020 to be very challenging for the coal industry due to lower domestic demand for thermal coal and substantive reductions in export prices, amid increasing difficulty in accessing capital early in the year as investors increase focus on the industry’s environmental, social and governance profile.[Robert Vergara]More ($): Moody’s revises outlook on Contura Energy to negative from stable Moody’s downgrades Contura Energy, says outlook remains negativelast_img read more

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