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Summary: Arch Coal Inc. Jun 10
Standard & Poors, June 2010
The 'BB-' rating on St. Louis, Mo.-based coal producer Arch Coal reflect its high debt levels, ongoing cost pressures in its eastern U.S. operations, and somewhat aggressive financial policy as well as the relatively weak domestic steam coal market. Still, Arch Coal benefits from favorable long-term coal-industry conditions, a diversified base of coal reserves, and good liquidity. The 'BB-' rating incorporates our expectation that higher steel operating rates and increased coal-generated electricity consumption, driven by the improving economic environment, combined with a full year's contribution from Jacobs Ranch in 2010, will result in Arch Coal's production increasing to about 150 million tons compared to 120 million tons in 2009. However, the company's eastern operations, which are in Central Appalachia, had...
Companies mentioned in this report are: Arch Coal Inc.
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Arch Coal Inc.