S&P rates Warrior Met loan B-

S&P said it assigned a B- corporate credit rating to Warrior Met Coal LLC.

The outlook is stable.

The agency also said it assigned a B- rating to Warrior Met Coal Intermediate Holdco LLC's proposed $350 million first-lien term loan due in 2024.

The recovery rating is 3, indicating 50% to 70% expected default recovery.

The ratings reflect the company’s weak business risk profile due to the inherent challenges of coal mining, operating in a cyclical industry, weather-related disruptions, capital intensive operations, labor-related challenges and increasingly stringent environmental and safety regulations, S&P said.

The ratings also consider its limited scale and scope, narrow product focus and exposure to the volatile hard coking coal price environment, the agency said.

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