A mild winter hasn’t been good for Knoxville-based coal company Xinergy, says Standard and Poor’s.
The ratings agency said it is placing its Xinergy ratings on CreditWatch with negative implications.
“The CreditWatch listing reflects our concern that weak demand for thermal coal due to an unseasonably warm winter in the company’s regional end market result in lower-than-expected 2012 earnings, leading to additional deterioration of the company’s fragile liquidity position,” according to a report on the Reuter’s website.
Xinergy’s key has mining operations are in West Virginia and Kentucky. The company provides coal to electric utilities and industrial users.
Read more from Reuters here.