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Prospect News home > News index > List of issuers A > Headlines for Arch Coal, Inc. > News item |
S&P rates Arch Coal notes BB-
Standard & Poor's said it assigned a BB- issue-level rating, same as the corporate credit rating, to Arch Coal Inc.'s proposed $500 million senior unsecured notes due 2020. The recovery rating is 4, indicating an expectation of 30% to 50% recovery in a default. The agency said it affirmed its BB- corporate credit rating.
The outlook is stable.
The recovery rating on Arch Western Finance LLC's $950 million senior secured notes due 2013 was revised to 3, indicating an expectation of 50% to 70% recovery in a default.
Proceeds are expected to be used to call up to $500 million of its existing senior secured notes.
The ratings reflect the company's fair business risk profile and aggressive financial risk profile, S&P said.
The ratings also consider its high debt levels, ongoing cost pressures in its eastern U.S. operations and a somewhat aggressive financial policy, the agency said.
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