Fitch Ratings gave a "BBB-" rating to Whitehaven Coal's (ASX:WHC) proposed first-lien senior secured notes, to be issued under a dual-tranche structure, the ratings agency said Monday.

The first-lien senior secured notes are on equal footing with Whitehaven's first-lien senior secured term loan and first-lien senior secured revolving credit facility, and are therefore similarly rated one-notch higher than the company's long-term issuer default rating, Fitch said.

The company's acquisition of the Daunia and Blackwater mines has considerably increased its scale and diversification, which Fitch cited as a key rating driver. It said Blackwater also provides further potential for expansion, including mining at Blackwater South, which is not captured in the current rating.

Other rating drivers include Whitehaven's improved cost position, an expectation for the Middle East conflict to boost thermal coal demand in East Asia, strong liquidity, and reduced merger and acquisition risk in the near term, Fitch said.