Moody’s Downgrades Coal Sector on Weakening Export Demand
Ratings firm cites closure of coal-fired power plants and weakening demand from steelmakers
By Alexander Gladstone
Aug. 21, 2019 3:11 pm ET
The U.S. coal industry, already reeling from slumping demand as power plants switch to natural gas, is in for more hardship from weakening export prices, according to a new report from Moody’s Investors Service.
The ratings firm downgraded its outlook for the sector to negative from stable Wednesday, noting a “substantive decrease” in export prices for thermal coal, particularly in Europe, which will result in a 3% decline in overall earnings before interest, taxes, depreciation and amortization over the next 12 months.
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