S&P: Allied Nevada notes B

Standard & Poor's said it assigned its B corporate credit rating to Allied Nevada Gold Corp. The outlook is stable.

At the same time, the agency said it assigned its B issue-level rating and a 3 recovery rating to the company's C$400 million senior unsecured notes due 2019. The 3 recovery rating indicates an expectation for meaningful recovery in the event of a payment default.

"Our corporate credit rating on Allied Nevada reflects our view of the company's business risk as 'vulnerable' and its financial risk as 'aggressive'," said S&P credit analyst James Fielding in a news release.

"Weaknesses include the company's reliance on a single operating mine, exposure to volatile precious metals prices and very high capital needs related to the company's aggressive mine expansion plans," Fielding said.

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