Research Update: Coronado Global Resources Outlook Revised To Negative On Potential Material End-Market Disruption; 'B+' Rating Affirmed

We believe Australia-based metallurgical coal company Coronado Global Resources Inc. faces potentially significant operational and end-market disruptions from the COVID-19 pandemic and looming global recession. In our view, Coronado has some financial flexibility to manage disruptions to operations over the next 12 months, such as its decision to idle three U.S. mines. However, this financial flexibility could be exhausted prior to any recovery. On April 6, 2020, S&P Global Ratings revised its outlook on Coronado to negative from stable. At the same time, we affirmed the 'B+' long-term issuer credit rating on Coronado. The negative outlook reflects our expectations that a likely global recession could significantly disrupt Coronado's operations and end-markets over the next 12 months. The negative outlook reflects

...- We believe Australia-based metallurgical coal company Coronado Global Resources Inc. faces potentially significant operational and end-market disruptions from the COVID-19 pandemic and looming global recession. - In our view, Coronado has some financial flexibility to manage disruptions to operations over the next 12 months, such as its decision to idle three U.S. mines. However, this financial flexibility could be exhausted prior to any recovery. - On April 6, 2020, S&P Global Ratings revised its outlook on Coronado to negative from stable. At the same time, we affirmed the 'B+' long-term issuer credit rating on Coronado. - The negative outlook reflects our expectations that a likely global recession could significantly disrupt Coronado's operations and end-markets over the next 12 months....

Research Update