Research Update: Arch Coal Outlook Revised To Negative As Company Borrows To Bolster Liquidity; Ratings Affirmed Nov 12
- Language: English
- Published: November 2012
We have assigned an issue-level rating of 'BB-' and a recovery rating of '4' to U.S. coal producer Arch Coal Inc.'s (Arch Coal) $500 million 7.25% senior unsecured notes. The company has announced that it will use proceeds of the 7.25% notes to redeem $500 million of the $950 million 6.75% senior notes issued by Arch Western Finance LLC (AWF), a subsidiary of Arch Coal. Our issue-level and recovery ratings for Arch Coal's 8.75% notes remain unchanged at 'BB-' and '4'. Although the issue-level rating for AWF's notes remains unchanged at 'BB-', we have revised the recovery rating to '3' from '4'. In our view, the AWF notes have stronger recovery prospects than the Arch Coal notes because of their...
Companies mentioned in this report are: Arch Coal Inc.,Arch Western Resources LLC,Arch Western Finance LLC
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Research Type: Full Analysis
Arch Coal Inc.,Arch Western Resources LLC,Arch Western Finance LLC