Fitch Downgrades Peabody Energy's IDR To 'BB'; Outlook Stable

(RTTNews) - Fitch Ratings said Thursday that it has downgraded Peabody Energy Corp.'s (BTU) Issuer Default Rating to 'BB' from 'BB+'.

The Rating Outlook has been revised to Stable from Negative.

Fitch said the downgrade results from its expectations for leverage above 4x for a prolonged period in advance of a full recovery of the seaborne coal markets.

Peabody's credit ratings reflect large, well-diversified operations, good control of low-cost production, strong liquidity and high financial leverage following the acquisition of Macarthur Coal Ltd. for $4.8 billion in an all-cash deal in 2011, Fitch said.