...- We believe Conuma Resources Ltd. faces heightened refinancing risk associated with its secured notes due May 2023 due to commodity and credit market uncertainty. - In our view, the company is likely dependent on sustained strength in metallurgical coal prices and permits to facilitate the extension of its mine lives to support a refinancing transaction that is not tantamount to a distressed exchange. - As a result, S&P Global Ratings lowered its issuer credit rating (ICR) on Conuma to '###' from '###+' and its issue-level rating on the company's senior secured notes to '###+' from 'B-'. The '2' recovery rating on the notes is unchanged. - The negative outlook reflects the risk that a distressed exchange could be inevitable, most likely due to a decline in metallurgical coal prices, production uncertainty beyond the next few years, and continuing difficult credit market conditions that limit the prospects for refinancing at par....
