S&P rates Consol notes BB

Standard & Poor's said it assigned its BB issue-level rating (the same as the corporate credit rating) to Consol Energy Inc.'s proposed $1.6 billion senior unsecured notes due 2022.

The agency assigned the notes a 3 recovery rating, which indicates an expectation for meaningful (50% to 70%) recovery in the event of a payment default.

Proceeds are expected to be used to repay the $1.5 billion 8% senior unsecured notes due 2017, with the balance going toward the repayment of other senior debt.

S&P said the ratings on Consol reflect its view that the company's business risk profile is "fair" and financial risk profile "significant." The agency estimates that debt to EBITDA will average less than 4x during the next few years and interest coverage will average more than 3x, measures that are consistent with a "significant" financial risk profile.

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