June 11, 2018 Read More →

Ratings downgrade as U.S. coal company Bowie Resource Partners faces ‘liquidity shortfall’

S&P Global Market Intelligence ($):

Bowie Resource Partners LLC could face a liquidity shortfall in the next year if it fails to extend its revolving credit facility, S&P Global Ratings said in a downgrade of the U.S. coal producer.

The company’s liquidity may be insufficient to cover its revolver due in August and mandatory amortizations, a June 8 ratings action said. S&P Global Ratings dropped its corporate credit rating for Bowie from “CCC+” to “CCC,” lowered the rating on the company’s $335 million first-lien and $100 million second-lien term loans to “B-” and “CC” from “B” and “CCC” and placed all ratings on CreditWatch with negative implications.

“While long-term contracts with large utility customers provide some stability to future cash flows, we view the business to be vulnerable to unexpected outages or operational disruptions given its smaller size and dependence on two anchor customers,” the rating agency wrote.

More ($):  Bowie Resource Partners downgraded over concerns of liquidity shortfall

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