Moody's rates International Coal revolver B1, notes B3

Moody's Investors Service said it assigned a B1 senior secured rating to ICG, LLC's proposed $350 million amended revolver and a B3 senior unsecured rating to International Coal Group, Inc.'s (ICG) proposed $250 million of notes.

Moody's also said it assigned ICG a corporate family rating of B2 and an SGL-3 speculative grade liquidity rating.

Moody's also affirmed ICG's existing B2 senior secured ratings.

ICG's B2 corporate family rating reflects the significant challenges facing ICG in meeting its aggressive production targets and the significant capex and resultant negative free cash flow that will be associated with these targets, Moody's said.

The ratings favorably reflect the company's ownership of the majority of its reserves, and its relatively low level of reclamation, workers compensation, black lung and other legacy liabilities, the agency added.

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