Moody’s gives Warrior Met Coal, notes B3

Moody's Investors Service said it assigned Warrior Met Coal, Inc. a corporate family rating of B3, probability of default rating of B3-PD, and a senior secured notes rating of B3.

The outlook is stable.

Warrior's operating assets consist primarily of two longwall mines located in Alabama and acquired from Walter Energy as part of Walter's Chapter 11 bankruptcy process, Moody’s noted. Warrior produces and exports metallurgical coal for a diversified customer base of blast furnace steel producers located primarily in Europe and South America.

Proceeds from the notes issuance, along with a portion of cash on hand, are expected to be used to pay a one-time dividend to Warrior's shareholders.

The ratings reflect the significant operational concentration in two mines, and the inherent volatility of the metallurgical coal markets, the agency explained.

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