S&P Global Ratings on March 26 upgraded Murray Energy Corp.'s issuer rating to CCC+ from SD, with a negative outlook.
The upgrade was based on the expectation that the coal producer will continue to buy back its second and 1.5 lien notes at a discount to par on the open market for its debt restructuring.
S&P Global Ratings expects the company's adjusted leverage to decline to 6.5x by the end of 2019 due to lower cash costs, improved price realizations and continued debt repayment.
On March 21, the rating agency downgraded Murray's issuer credit rating to SD from CCC+, calling the coal producer's deeply discounted open market debt buybacks "tantamount to default."
The rating agency's actions on other notes March 21 were left unchanged.
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.