Consolidated Energy - comment
The Fitch downgrade from BB- to B+ reflects the risks we highlighted in our investment memorandum. Consolidated Energy (CONSOL) operates in volatile markets. It is also acquisitive and will not pass up an attractive asset. We continue to like CONSOL given the asset value underneath the bonds, the structural changes in the Methanol market and the low-cost plants operated by CONSOL. We expect that EBITDA and Free Cash flow will continue to grow in the medium term.