Whitehaven Coal Ltd (WHC.AU) saw its stock price soar 5.05% during intraday trading on Thursday, following a positive credit assessment and optimistic earnings projections.
The surge comes after Fitch Ratings assigned the company a long-term issuer default rating of "BB+" with a stable outlook. The rating reflects Whitehaven's robust business profile following the acquisition of the Daunia and Blackwater mines, which increased scale and diversification while reducing energy transition risk. Metallurgical coal now accounts for approximately 60% of the company's revenue, and its mine life could extend beyond 50 years.
Furthermore, Fitch highlighted the company's strong liquidity, supported by consistent positive free cash flow and the 30% sell-down of the Blackwater asset. The agency also noted that the ongoing Middle East conflict is expected to support thermal coal demand in East Asia as a substitute for oil and natural gas, which could lift Whitehaven's earnings in the near term.