S&P downgraded Coronado Global Resources' credit rating due to a weak coal market.

S&P Global Ratings has downgraded Coronado Global Resources Inc.'s long-term issuer credit rating from 'B+' to 'B' and the company's senior secured debt rating from 'BB-' to 'B+'. This decision is attributed to weak metallurgical coal prices and the company's high cost base, which negatively impacts Coronado's profitability, cash flow, and liquidity.

The negative outlook reflects the potential for accelerated cash losses within the next six months if coal prices remain below expectations and mining costs stay high. Coronado is unlikely to generate positive cash flow at current market prices due to its elevated cost position and capital expenditures. The company's mining costs are projected at approximately $100 per metric ton, exposing it to Queensland's recently revised royalty regime, which could further strain profitability.