Research Update: Arch Coal Inc.'s $2 Billion Notes To Fund International Coal Acquisition Rated 'B+' (Recovery Rating: '5'), On Watch Dev Jun 11

Standard & Poors, June 2011

Abstract
U.S. coal producer Arch Coal Inc. is issuing $2.0 billion senior unsecured notes, the proceeds of which it expects to use to partly finance its pending $3.4 billion acquisition of International Coal Group Inc. We have assigned a 'B+' issue-level rating and '5' recovery rating to the proposed $2.0 billion senior unsecured notes. These ratings are placed on CreditWatch with developing implications until the acquisition closes. The ratings on Arch Coal remain on CreditWatch with developing implications. The ratings on International Coal Group remain on CreditWatch with positive implications. We would likely affirm our corporate credit rating on Arch Coal at 'BB-' if the acquisition of International Coal is completed and financed as proposed. The rating outlook would be stable....

Companies mentioned in this report are: Arch Coal Inc.,Arch Western Resources LLC,Arch Western Finance LLC
Action: CreditWatch Update
Action: New Rating

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

Arch Coal Inc.,Arch Western Resources LLC,Arch Western Finance LLC

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