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To: The Ox who wrote (12472)	5/8/2012 5:22:08 PM
From: Return to Sender	2 Recommendations Respond to of 13403

OT: Ratings changes like this one will do that to a stock. It's not 7 yet and 7 is not an all time low: Moody's Lowers View Of US Coal Industry, Sees Permanent Decline Last update: 5/8/2012 10:00:51 AM DOW JONES NEWSWIRES Moody's Investors Service has lowered its outlook on the fundamentals of the U.S. coal industry to negative and expects some of the decline in U.S. coal consumption to be permanent. Electricity producers' demand for coal has diminished recently as natural gas prices have sunk to new lows. The ratings firm said it expects coal producers' operating margins to continue to deteriorate this year and sees U.S. coal prices to fall at least 5% in 2013. "A regulatory environment that puts coal at a disadvantage, along with low natural gas prices, have led many utilities to increase or accelerate their scheduled coal-plant retirements," said Moody's analyst Anna Zubets-Anderson. Newly proposed environmental regulations add further pressure on coal companies, added Zubets-Anderson, by requiring new projects to adopt expensive clean technology. Moody's sees U.S. coal demand from power plants declining by 100 million tons by 2020. More immediately, it expects cash costs to increase this year amid lower delivery volumes, pressuring margins. The negative outlook reflects expectations that the U.S. electric sector's coal consumption will fall by at least 5% over the next 12 to 18 months. Moody's could raise its outlook to stable if power consumption grows up to 5% over the next 12 to 18 months, or to positive if power consumption grows more than 5%. Several U.S. coal companies, including Arch Coal Inc. (ACI), Peabody Energy Corp. (BTU) and Alpha Natural Resources Inc. (ANR) have cut production this year in a response to languid demand for power-plant coal in the U.S. Export demand remains strong, as emerging markets continue to need coal for steel-making and power production. -By Kristin Jones; Dow Jones Newswires; 212-416-2208; kristin.jones@dowjones.com (END) Dow Jones Newswires May 08, 2012 10:00 ET (14:00 GMT)