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Arch Coal Inc. Corporate Credit Rating Cut To 'BB-', Outlook Stable; Weak Financials Cited Jul 05
Standard & Poors, July 2005
Abstract
NEW YORK (Standard & Poor's) July 19, 2005--Standard & Poor's Ratings Services said today that it lowered its ratings on Arch Coal Inc. The outlook is stable. The corporate credit rating was lowered to 'BB-' from 'BB', reflecting Arch Coal's weaker-than-expected financial performance because of its high debt levels from aggressive spending on growth. 'The action also reflects our view that, despite favorable coal industry fundamentals and pricing, the company is unlikely to improve its credit metrics to levels commensurate with its previous rating level over the intermediate term,' said Standard & Poor's credit analyst Dominick D'Ascoli. 'Indeed, rising mining costs combined with extensive railroad maintenance that will limit coal shipments from Arch's largest production area in the Wyoming part...
Companies mentioned in this report are: Arch Coal Inc.,Arch Western Resources LLC
Action: Downgraded
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.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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