trending Market Intelligence /marketintelligence/en/news-insights/trending/BpSdXDoNaWJcPCnisgSb-g2 content esgSubNav
In This List

S&P lowers Murray Energy credit rating to 'default' after missed payments

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


S&P lowers Murray Energy credit rating to 'default' after missed payments

S&P Global Ratings lowered Murray Energy Corp.'s issuer credit rating to "default" from "selective default" after it missed amortization and interest payments on B-2 and B-3 term loans during a grace period that expired Oct. 7.

Ratings also said it lowered its issue-level ratings on the coal miner's $51 million outstanding B-2 and B-3 nonextended term loans due in 2020 from CC to D.

Ratings held its D rating on the company's $1.6 billion B-2 and $158 million B-3 outstanding first-lien term loans due in 2022, $295 million outstanding second-lien notes due in 2021 and $479 million outstanding 1.5-lien senior notes due in 2024.

"The downgrade follows the expiration of a five-day grace period during which Murray elected not to pay amortization and interest payments on its superpriority term loans B-2 and B-3 due on Sept. 30, 2019," Ratings said in an Oct. 8 statement.

Ratings noted Murray Energy is in forbearance until Oct. 14 as it evaluates a possible restructuring plan with creditors.

"However, we view nonpayment within the stated grace period as a general default because Murray has failed to pay its obligations as they came due, regardless of the forbearance," Ratings said.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.