Research Update: Foundation Coal Corp. Outlook Revised To Stable On Weaker Credit Metrics; Ratings Affirmed

Standard & Poors, February 2007

Abstract
On Feb. 16, 2007, Standard & Poor's Rating Services revised its outlook on Linthicum Heights, Md.-based Foundation Coal Corp. to stable from positive. At the same time, Standard & Poor's affirmed its 'BB-' corporate credit rating and 'B' senior unsecured debt rating on the company. The outlook revision reflects the company's weaker credit metrics and operating earnings due to industry-wide cost pressures and declining prices, operational challenges in its Central Appalachian mines, and our expectations of continued soft industry conditions over the intermediate term. The ratings on Foundation Coal reflect its aggressive financial leverage (including legacy liabilities), production concentration, and inherent operating risks of coal mining. Partially offsetting these risks are its competitive cost position and favorable long-term coal industry...

Companies mentioned in this report are: Alpha Natural Resources Inc. (New)
Action: Affirmed
Action: Outlook: Stable

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

Alpha Natural Resources Inc. (New)

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