Walter Energy Inc. May 11
- ID: 1873779
- May 2011
- Standard & Poors
Significant high-quality metallurgical (met) coal reserves, and Strong met coal pricing supported by Asian demand and operating disruptions Limited product diversity and scope of operations, Significant operations concentrated in a high-cost and difficult-to-mine basin subject to increasing regulatory scrutiny, and Highly cyclical end markets The rating on Walter Energy Inc. reflects what Standard & Poor's Ratings Services considers to be the combination of the company's weak business risk profile and significant financial risk profile. Although the acquisition of Western Coal Corp. in provides some end market and operational diversity, the bulk of the company's earnings and cash flow will still rely on met coal sales, which are highly cyclical. In our view, strength met coal prices will support improving credit...
Companies mentioned in this report are:
- Walter Energy Inc.
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: Full Analysis