S&P downgrades Patriot Coal

Standard & Poor’s said it lowered the corporate credit rating on Patriot Coal Corp. to D from B-, along with the rating on its $250 million senior secured term loan to D from B.

The downgrades follow news that Patriot filed voluntary petitions for restructuring under Ch. 11 of the U.S. Bankruptcy Code, S&P said.

The company has slightly more than $790 million of debt outstanding and is seeking court approval for a committed $100 million debtor-in-possession financing, the agency said.

The company is evaluating strategic alternatives and is in active negotiations for the sale of substantially all operating assets to a strategic partner, S&P said.

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