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On November 12, 2020, Moody's Investors Service downgraded its corporate family rating on Peabody Energy Corporation to Caa1 from B3, its probability of default rating to Caa1-PD from B3-PD and its senior secured debt ratings to Caa1 from B3. The downgrade is driven primarily by eroding liquidity and an increased likelihood of a debt restructuring, says the ratings agency. Moody's does not expect that the Company will be able to maintain compliance with financial maintenance covenants (including a quarterly Net Debt/EBITDA test of 2.0x with cash netting limited to $800 million) in the fourth quarter of 2020.
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