Alpha Natural (ANR) Lower as S&P Places Ratings on CreditWatch Negative
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Alpha Natural Resources (NYSE: ANR) may be cut by S&P, according to Bloomberg.
Shares are over 3 percent lower on the warning today.
The release follows:
Standard & Poor's Ratings Services today placed its ratings, including the 'BB-' corporate credit rating, on Bristol, Va.-based Alpha Natural Resources Inc. on CreditWatch with negative implications. The CreditWatch negative listing means we could affirm or lower the ratings after we complete our review.
We placed the ratings on CreditWatch following Alpha's announcement that it plans further production curtailments in 2013, given weaker pricing and demand for both thermal and metallurgical coal," said credit analyst Megan Johnston. "Alpha now plans 2013 tonnage production around the low-80 million range, down from our previous expectation of 90 million tons. We previously expected 2013 EBITDA of between $750 million and $850 million."
In resolving the CreditWatch listing, we will review our performance expectations and Alpha's liquidity position, and assess its operating prospects to determine whether a lower rating is warranted. This will include meeting with management to discuss near-term operating and financial prospects, including end market trends. We expect to resolve the CreditWatch listing within the next several weeks.
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Shares are over 3 percent lower on the warning today.
The release follows:
Standard & Poor's Ratings Services today placed its ratings, including the 'BB-' corporate credit rating, on Bristol, Va.-based Alpha Natural Resources Inc. on CreditWatch with negative implications. The CreditWatch negative listing means we could affirm or lower the ratings after we complete our review.
We placed the ratings on CreditWatch following Alpha's announcement that it plans further production curtailments in 2013, given weaker pricing and demand for both thermal and metallurgical coal," said credit analyst Megan Johnston. "Alpha now plans 2013 tonnage production around the low-80 million range, down from our previous expectation of 90 million tons. We previously expected 2013 EBITDA of between $750 million and $850 million."
In resolving the CreditWatch listing, we will review our performance expectations and Alpha's liquidity position, and assess its operating prospects to determine whether a lower rating is warranted. This will include meeting with management to discuss near-term operating and financial prospects, including end market trends. We expect to resolve the CreditWatch listing within the next several weeks.
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