This rating cut was for new debt (if issued). Note that S&P raised the outlook for repayment of existing debt today also as result of recent asset sale. From the release:
"S&P also revised the recovery rating on the debt to '2' from '1', indicating S&P's expectation for substantial recovery for holders in the event of a payment default. S&P's reassessment of the recovery rating stems from the proposed sale of the Canyon Fuel assets, which generate about $90M of annual EBITDA on 9.3M tons of sales."
Things finally beginning to look up for ACI as acknowledged by S&P. We continue to go up tomorrow.