CHICAGO, May 31 /PRNewswire/ -- Duff & Phelps Credit Rating Co. (DCR) has
upgraded the senior unsecured debt rating of Black Beauty Coal Company (Black
Beauty) to 'BBB' (Triple-B) from 'BBB-' (Triple-B-Minus). This rating action
covers approximately $140 million of existing private placement debt.
The upgrade reflects the continued success of Black Beauty's coal mining
and marketing business. A series of strategic reserve acquisitions over the
past several years has positioned Black Beauty as a dominant reserve holder in
the Illinois Basin and in Indiana. The rating also considers management's
track record for completing projects and maintaining a conservative long-term
financial strategy. Black Beauty has a strong track record of long-term
contracts, renewing or replacing year-to-year supply agreements and has firm
sales commitments for 98.7 percent of fiscal year 2000 projected production.
Management also has a program to reduce leverage further through operating
cash flow.
Black Beauty is an Indiana-based general partnership that conducts coal
mining, processing, marketing and general shipping operations in the Illinois
Basin, which includes the coal-producing regions of Illinois, Indiana and
western Kentucky. Black Beauty is the largest single producer of Indiana
coal. Black Beauty and its affiliates operate 11 surface mines and four
underground mines in the Illinois Basin. The company is currently owned by
two entities: Black Beauty Resources, Inc., a closely held corporation, owns
18.3 percent of Black Beauty and Thoroughbred, LLC, beneficially wholly owned
by Peabody Group, owns 81.7 percent of Black Beauty.
Peabody is the world's largest coal company, with operations in the United
States and Australia. Its coal products fuel more than 9 percent of all U.S.
electricity and 2.5 percent of worldwide electricity.
DCR is a leading global rating agency with 34 local market offices
providing ratings and research on debt issues and insurance claims paying
ability in more than 50 countries. For additional research visit DCR's Web
site at http://www.dcrco.com. DCR's research is also available on Bloomberg
at DCR and First Call's BondCall Direct/Research Direct at
http://www.firstcall.com, as well as through other third-party providers.
SOURCE Duff & Phelps Credit Rating Co.
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Related links:
http://www.dcrco.com
CONTACT:
Randall P. Biang, 312-606-2342,
biang@dcrco.com, or Jeffery F. Miller, 312-368-3192,
miller@dcrco.com, both of Duff & Phelps Credit Rating Co.
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