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On December 7, 2020, S&P Global Ratings lowered its issuer credit rating on Arch Resources, Inc. to B- from B and its senior secured debt rating to B from BB-. The ratings agency expects Arch to significantly cut thermal coal production because of the ongoing secular decline in demand for thermal coal in the Powder River Basin and other thermal coal basins. Declining thermal demand and prices are driving the Company to permanently shrink those operations and begin reclamation work at some of its mines. Furthermore, the Company’s negative outlook reflects the potential for leverage to remain above 8x through 2021 if coal demand and prices don't improve, as well the risk of collateral calls by its surety bond providers.
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