Social risks accelerate in coal sector – report : vim

Social risks accelerate in coal sector – report


Social risks accelerate in coal sector – report
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Increasing social risk is leading larger mining companies to divest coal-related assets, and social opposition to coal production leaves coal assets increasingly concentrated among companies that specialize in coal production, rather than diversified groups, a new report by Moody’s Investor Service has found.
Pure-play coal companies generally have weaker credit quality, with demand fading in some markets combined with a lack of product diversity, Moody’s points out.
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All pure-play coal companies are rated below investment-grade today. In Moody’s analysis of dozens of global sectors, researchers have determined that the coal industry has very high social risk with thermal coal facing more significant risk than metallurgical (met) coal used in steelmaking.

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