Another shoe dropped for Arch Coal Inc. (NYSE: ACI) today as Fitch Ratings has lowered the company’s credit rating to ‘B+’, four notches below investment grade. The rating follows yesterday’s quarterly earnings report from the coal miner which showed an EPS loss, lower revenues, and a significantly lowered production forecast.
Fitch estimates that Arch’s free cash flow for 2012 will be negative, in the range of -$150 million to -$370 million and also points to high inventories and high debt:
The credit ratings also reflect oversupply in the domestic steam coal market which is expected to result in substantially lower earnings through at least 2013. Weak earnings and high debt levels post the acquisition of International Coal Group in 2011 will result in high leverage metrics over the period offset by strong liquidity.
Shares are down about -7.3% today, at $8.55 after posting a new 52-week low of $8.42 earlier. The previous low of $9.02 was set yesterday.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
