NEW YORK (TheStreet) -- After big gains on Wednesday, shares of Walter Energy (WLT) reversed course on Thursday, falling 14.1% to $7.81.
Walter Energy rose Wednesday after it announced that it was offering $100 million of 9.5% senior accrued notes due in 2019 and another $350 million senior accrued toggle notes due in 2020 in an effort to raise capital to pay down debt.
However, Standard and Poor's rating service maintained a B- rating on the stock, saying that the "negative outlook reflects our expectation that operating results and credit measures will be weak for at least the next 12 months because of continued difficult coal market conditions that have pressured metallurgical (met) coal prices."
Separately, TheStreet Ratings team rates WALTER ENERGY INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about its recommendation:
"We rate WALTER ENERGY INC (WLT) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, generally disappointing historical performance in the stock itself and generally high debt management risk."