September 08, 2008

Moodys cuts Griffin Coal ratings to Ba3

Thomson Financial reported that Moody's Investors Service has cut Australia based Griffin Coal Mining Company Pty Ltd's corporate family and senior unsecured ratings to 'Ba3' from 'Ba2', with a stable outlook.

Moody said that the downgrade reflects lower earnings and profitability in 2007 relative to initial forecasts and the outlook for lower production levels, earnings and cash flows, than forecast. It added that the company carries extended risk surrounding the completion and commissioning of its major coal carbonization project.

Moody however, said that Griffin has strong reserves and contracts, and is proceeding on time and within budget with its Bluewaters I and II projects, which when successfully completed will provide strong revenue streams to replace from 2010 Verve Energy's expiring contract.