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S&P cuts Arch Coal debt rating to 'BB-'

Standard & Poor's Ratings Services said that it lowered its issue-level rating on Arch Coal's senior secured bank debt to 'BB-', one notch above the corporate credit rating, from 'BB'. 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.