S&P rates VeraSun Energy notes B-

Standard & Poor's said it assigned its preliminary B- rating to VeraSun Energy Corp.'s proposed $200 million senior secured notes due 2012.

The outlook is stable.

S&P said the rating on VeraSun reflects risks that include high refinancing risk and exposure to volatile commodity prices.

The agency said the risks are offset by VeraSun's standing as the second largest producer of ethanol in the United States and its 340 million gallons per year of capacity in 2007 when the Charles City, Iowa, facility is expected to come on line.

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