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U.S. Coal Industry's Outlook for Credit Quality May 02
Standard & Poors, May 2002
Abstract
During the past two years, coal prices have exhibited extremely volatile behavior more typical of other commodities or energy sources, rather than the historically stable pricing coal had been known for. A confluence of factors in the autumn of 2000 contributed to the significant rise in prices: Strict East Coast permitting requirements, the elimination of inefficient capacity during the previous decade, a return to more normal seasonal weather patterns, and significant price increases for competing fuels (primarily natural gas) led to a shortage of utility stockpiles of coal and the dramatic increase in prices that followed for most of 2001. Some U.S. coal producers benefited from these higher prices; renewed interest by the capital markets allowed some large producers to...
Companies mentioned in this report are: Consol Energy Inc.,Anker Coal Group Inc.,Peabody Energy Corp.,Arch Coal Inc.,Massey Energy Co.
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: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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