Whitehaven Coal (ASX:WHC) was given a long-term issuer default rating of "BB+" with a stable outlook, reflecting its robust business profile following the acquisition of the Daunia and Blackwater mines, which "increased scale and diversification and reduced energy transition risk", Fitch Ratings said in a Thursday report.

Metallurgical coal now counts for around 60% of the firm's revenue, with its product range now including hard and semi-hard coking coal and pulverised coal. Whitehaven's mine life could extend beyond 50 years.

Its managed run-of-mine production increased to about 39 million tonnes in its first full year of ownership in fiscal year 2025, compared with 25 million tonnes in fiscal year 2024. The company plans for further incremental growth in run-of-mine production to fiscal 2029.

Fitch expects its liquidity to remain strong, supported by consistent positive free cash flow generation over the cycle and the 30% sell-down of Blackwater to Japanese steelmakers in fiscal 2025. The 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.

Fitch also assigned "BBB-" ratings to the proposed first-lien senior secured term loan and first-lien senior secured revolving credit facility to be arranged by Whitehaven's wholly-owned unit, Australian MetCoal Financing, and guaranteed by Whitehaven.