Moodys Investors Service Inc. has downgraded coal
producer Peabody Energy Corp.s corporate family rating to
Ba2 from Ba1 on expectations of a weak metallurgical and
thermal coal market over the next 12 to 18 months
however, that the outlook for the St. Louis-based company is
"We anticipate revenue
and Ebitda (earnings before interest, taxes, depreciation and
amortization) generated by Peabodys Australian business
to decline in 2014 due to lower metallurgical and seaborne
thermal coal prices," Moodys said.
Benchmark settlement prices for high-quality metallurgical
coal will rise above the recent settlement of $145 per tonne
but will remain below $160 due to additional supplies coming
online worldwide and "persistently weak demand" from the global
steel industry, the ratings agency said.
A version of this article was first published by AMM sister
publication Steel First.