Peabody Energy downgraded at S&P on coal market weakness

|About: Peabody Energy Corp. (BTUUQ)|By:, SA News Editor

Standard & Poor's cuts its credit rating on Peabody Energy (BTU) a notch further into junk territory, to BB from BB+, believing coal market conditions will remain difficult for the next year or two.

BTU continues to face low domestic thermal coal prices as utilities continue to work off still-high inventories, S&P says; overseas, prices of met have fallen significantly amid lower demand in Europe, slowing economic activity in China, and a lack of operating disruptions.

Last week, Moody's and Fitch downgraded their respective ratings on BTU.