Fitch cuts Alliance Resource to junk

Fitch Ratings said it downgraded Alliance Resource Operating Partners, LPs and Alliance Resource Partners, LP's long-term issuer default ratings to BB from BBB-.

Also, Fitch lowered the company's $400 million of senior unsecured notes to BB from BBB-, and assigned the notes an RR4 recovery rating. Fitch also cut Alliance's secured revolver to BBB- from BBB and assigned the facility an RR1 recovery rating. The outlook is negative.

“The downgrade and outlook reflect Fitch's expectation that shipments will remain structurally challenged at below 30 million tons per year, leading to continued EBITDA and FCF weakness. This, in conjunction, will capital market access limitations, is expected to materially heighten liquidity and refinance risks,” the agency said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.