Walter Energy credit rating cut another notch at S&P

|About: Walter Energy, Inc. (WLT)|By:, SA News Editor

Walter Energy (WLT +7.5%) is downgraded further into junk territory, to B- from B, with a negative outlook, by Standard & Poor's, which believes the met coal producer's leverage will remain high as it continues to face low coal prices.

S&P says market conditions will remaining challenging for WLT over the next year, noting coal prices likely will remain weak amid lower demand in Europe, slowing economic activity in China and a lack of operating disruptions among competitors.

Meanwhile, Cowen reiterates its Outperform rating on WLT after meeting with top management; the firm comes away positive on cost control at WLT's mines and expects a successful conclusion to the planned asset sale/JV process (