Fitch rates Peabody Energy notes BB+

Fitch Ratings said it assigned a BB+ rating to Peabody Energy Corp.'s $650 million senior notes due 2016 and $250 million notes due 2026.

The agency also affirmed the company's issuer default rating, $650 million senior notes due 2013, $250 million senior notes due 2016, $1.8 billion revolving credit facility and $950 million term loan facility - all rated BB+.

The outlook is stable.

The ratings reflect Peabody's large, well-diversified operations, good control of low-cost production, strong liquidity and moderate leverage. The outlook is for coal producers to continue to benefit from a strong pricing environment over the near term, the agency said.

Fitch said Peabody's operations are well diversified with new activity concentrated in the Powder River Basin and the Illinois Basin, where it dominates. In addition, Peabody has more than 9 billion tons of coal reserves.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.