New York, April 02, 2015 -- Moody Investor's Service today downgraded the corporate family rating (CFR) of Alpha Natural Resources, Inc's (Alpha) to Caa3 from Caa1 and the probability default rating (PDR) to Caa3-PD/LD from Caa1-PD. The downgrade follows the company's announcement that it has completed the repurchase of an aggregate of approximately $593 million in principal amount of its unsecured notes, funding the aggregate repurchase price of approximately $331 million through a combination of the issuance of $214 million of senior secured second lien notes due 2020 and $117 million of cash on hand. Moody's appended an /LD designation to Alpha's PDR, reflecting the view that the debt repurchases qualify as a limited default under Moody's definition of default, which intends to capture events whereby issuers fail to meet debt service obligations outlined in their original debt agreements. At the same time, Moody's downgraded the first lien term loan to B3 from B2, second lien notes to Caa3 from B3 and senior unsecured notes to Ca from Caa2. The outlook is negative.
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