Moody's cuts Peabody further into junk as coal market remains weak

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

Peabody Energy's (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.

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