S&P rates International Coal loan B-

Standard & Poor's said it assigned its B- corporate credit rating to International Coal Group LLC, its B- rating and recovery rating of 3 to International Coal's proposed $285 million senior secured bank credit facility. The outlook is stable.

S&P said the ratings reflect the company's relatively small size, its high-cost profile and significant exposure to the difficult operating environment of Central Appalachia.

They also reflect heavy capital spending needs to address aging mining equipment, fairly aggressive debt leverage factoring debt-like obligations and uncertainties/concerns pertaining to the condition of its mines due to underspending by its predecessors during two bankruptcies, S&P said.

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