Peabody Energy downgraded at S&P on coal market weakness

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.

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Comments (3)
  • nemonemo
    , contributor
    Comments (337) | Send Message
    Lol these idiotic shorts getting too desperate. Repeating same old story.
    26 Aug 2013, 05:37 PM Reply Like
  • nemonemo
    , contributor
    Comments (337) | Send Message
    Oh and S&P also rated all junk mortgages as A+.
    26 Aug 2013, 05:38 PM Reply Like
  • chuck lewis
    , contributor
    Comments (436) | Send Message
    Editor The Lewis Letter
    S&P's credibility just sank further into the garbage dump, especially following today's Barron's two full page analysis that contradicts the rating agency's take on BTU. Hard to believe Barron's would "waste space" on the obvious turn around reported out of China and the eurozone's escape from its recession. Rising natural gas prices turning back utilities into coal. Short S&P for inaccurate reporting.
    26 Aug 2013, 06:13 PM Reply Like
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