S&P lifts Consol Energy

Standard & Poor's said it raised its corporate credit rating on Consol Energy Inc. to BB+ from BB and removed all ratings from CreditWatch where they had been placed with positive implications on Aug. 11.

The outlook is stable.

At the same time, the agency said it raised the rating on the company's 7.875% secured notes due 2012 to BBB from BBB- and kept the recovery rating at 1.

However, with the upgrade of the corporate credit rating to BB+, S&P said that the company has the option to request a release of the security, which, if it occurs, could result in a downgrade of the notes.

The agency noted that the upgrade reflects its expectation of improved financial performance and strengthened credit measures as the company resolves recent operational issues, realizes continued benefits from the reopening of the Buchanan metallurgical coal mine, and generates stronger cash flow from expected higher contract pricing in the current favorable coal markets.

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