S&P rates Fairmount BB-, loan BB

Standard & Poor's said it assigned its preliminary BB- corporate credit rating to Fairmount Minerals Ltd.

The outlook will be stable.

At the same time, on a preliminary basis, the agency said it assigned a BB issue-level rating and 2 recovery rating to the three debt issues that are part of the proposed senior secured credit facility, including the proposed $75 million senior secured revolving credit facility due 2015, the $150 million senior secured term loan due 2015, and the $550 million senior secured term loan due 2016.

"Our preliminary rating and outlook are based on the likelihood that Fairmount will generate around $200 million in EBITDA this year, reflecting solid frac sand demand," said S&P credit analyst Sherwin Brandford.

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