Fitch Affirms Peabody Energy Corporation's IDR at 'BB+'
Fitch Ratings has affirmed Peabody Energy Corporation's (Peabody, NYSE: BTU) Issuer Default Rating at 'BB+'.
Fitch expects to rate Peabody's new senior unsecured note issuance 'BB+' and has assigned a 'BB+' rating to the company's new $1 billion term loan.
The Rating Outlook is Stable.
Peabody's credit ratings reflect large, well diversified operations, good control of low-cost production, strong liquidity and moderate adjusted financial leverage in consideration of the current transactions to acquire Macarthur Coal.
Peabody Energy intends to acquire up to 100% of Macarthur Coal for $5.1 billion; financing will be comprised of $1 billion cash on hand, a $1 billion new five-year term loan, new senior unsecured note issuance, and up to $400 million in revolver drawings.
