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.
Alcoa Inc.’s announcement that it would cut global smelting capacity 12 percent in response to falling aluminum prices is being sliced and diced today as analysts debate what to expect when Alcoa releases its quarterly earnings report on Monday.
Company shares were down more than 2 percent in late morning trading
Reuters quotes analyst Tony Rizzuto, of Dahlman Rose & Co., who sees the smelting reduction “as positive for Alcoa and the industry as it could lead to a more balanced supply/demand environment and provide some stability to aluminum pricing.”