Moody's lowers outlook on Walter EnergyThe Associated Press
NEW YORK -- Moody's Investors Service has lowered its rating outlook on Walter Energy Inc. Friday to "stable" from "positive" on concerns about a weak metallurgical coal market.
Walter Energy, based in Birmingham, Ala., produces metallurgical coal for the steel industry and also produces metallurgical coke, steam and industrial coal and natural gas.
The rating agency said softness in the market could hurt the company's profitability and production, as well as hinder its ability to pay down debt tied to its acquisition of Canadian company Western Coal Corp. last year.
Moody's also affirmed the company's junk-grade corporate family rating of "B1". It assigned a speculative-grade liquidity rating of "SGL-2," indicating good liquidity.
The company's shares rose 27 cents to close at $49.98.