Research Update: Coronado Global Resources Downgraded To 'B' From 'B+' On Elevated Leverage And Challenged Coal Market; Outlook Negative - S&P Global Ratings’ Credit Research

Research Update: Coronado Global Resources Downgraded To 'B' From 'B+' On Elevated Leverage And Challenged Coal Market; Outlook Negative

Research Update: Coronado Global Resources Downgraded To 'B' From 'B+' On Elevated Leverage And Challenged Coal Market; Outlook Negative - S&P Global Ratings’ Credit Research
Research Update: Coronado Global Resources Downgraded To 'B' From 'B+' On Elevated Leverage And Challenged Coal Market; Outlook Negative
Published Mar 20, 2025
9 pages (3740 words) — Published Mar 20, 2025
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Weak metallurgical (met) coal prices will erode the profitability, cash flow, and liquidity of Coronado Global Resources Inc. Compounding the impact will be the company's high cost base, concessional pricing in its Stanwell coal supply agreement, and elevated capital expenditure (capex). We forecast negative EBITDA for fiscal 2025 in the absence of a sustainable recovery in met coal prices. Liquidity could potentially be less than the minimum US$200 million level we expect the company to operate with. We lowered our long-term issuer credit rating on Coronado to 'B' from 'B+'. At the same time, we lowered our long-term issue rating on the company's senior secured debt to 'B+' from 'BB-'. The recovery rating on the senior secured debt is '2'

  
Brief Excerpt:

...Weak metallurgical (met) coal prices will erode the profitability, cash flow, and liquidity of Coronado Global Resources Inc. Compounding the impact will be the company's high cost base, concessional pricing in its Stanwell coal supply agreement, and elevated capital expenditure (capex)....

  
Report Type:

Research Update

Ticker
165632D
Issuer
Coronado Global Resources Inc.
GICS
Steel (15104050)
Sector
Global Issuers
Country
Australia
Region
Pacific
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Coronado Global Resources Downgraded To 'B' From 'B+' On Elevated Leverage And Challenged Coal Market; Outlook Negative" Mar 20, 2025. Alacra Store. May 02, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Coronado-Global-Resources-Downgraded-To-B-From-B-On-Elevated-Leverage-And-Challenged-Coal-Market-Outlook-Negative-3341037>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Coronado Global Resources Downgraded To 'B' From 'B+' On Elevated Leverage And Challenged Coal Market; Outlook Negative Mar 20, 2025. New York, NY: Alacra Store. Retrieved May 02, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Coronado-Global-Resources-Downgraded-To-B-From-B-On-Elevated-Leverage-And-Challenged-Coal-Market-Outlook-Negative-3341037>
  
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