S&P assigns VeraSun notes B-

Standard & Poor's said in a corrected rating to modify the maturity date that it assigned its B- rating to VeraSun Energy Corp.'s proposed $450 million senior unsecured notes due 2017.

At the same time, the agency said it affirmed its B+ rating on the company's $210 million senior secured notes and B+ corporate credit rating on the company.

The outlook is stable.

The company will use the proceeds of the proposed notes, along with expected cash flow, to finance a new 110 million gallons per year plant in Reynolds, Ind., the agency noted.

S&P added that the B+ corporate credit rating reflects high refinancing risk, exposure to volatile commodity prices as well as exposure to natural gas and electricity prices at all six of VeraSun's ethanol facilities.

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