- Arch Coal (ACI) is downgraded further into junk territory by Fitch Ratings, which cuts the company's rating to C from CCC and says further negative ratings actions are possible if ACI's revenue does not increase materially or liquidity does not improve over the next 12-18 months.
- Fitch says it expects ACI's cash and short-term investments will provide sufficient liquidity through 2017, but that the company's cash burn - which the ratings agency estimates will total at least $200M/year through 2017 - will continue without a substantial recovery in prices for coal used in steelmaking.
- ACI on Thursday offered to swap four bond issues for new borrowings with a lower face value but better collateral (I, II), which would reduce its $3.1B long-term debt load but could give creditors a tighter grasp on the company's assets if continued deterioration in coal prices forces a debt restructuring.