- Peabody Energy's (NYSE:BTU) corporate rating is cut to Ba2, two steps into junk territory, by Moody's, which says the coal miner likely will continue to be hurt by a weak market for thermal and met coal.
- The downgrade reflects prolonged weak industry conditions for both types of coal, with little improvement expected over the next 12-18 months.
- Moody's expects BTU's credit metrics to weaken further in 2013-14, as higher-priced thermal contracts expire and low met coal prices persist.
- BTU -0.3% AH.