S&P rates Alliant loan B

Standard & Poor's said it assigned its B issuer credit rating to Alliant Resources Group Inc. At the same time, S&P assigned its B bank loan rating to the company's $205 million senior secured credit facilities comprised of a $175 million seven-year term loan and a $30 million five-year revolving credit facility.

The outlook is stable.

"The ratings are based on an experienced senior management team, adequate operating results, and successful integration of acquired companies," explained S&P credit analyst Donovan Fraser. "Offsetting these strengths is a very limited track record, very weak capitalization, and the reliance on cash flow in the near term to rebuild equity."

S&P said it expects the $175 million term loan net of transaction fees to be used to repay existing debt of about $80 million and the balance to retire Alliant Resources' preferred stock and pay accrued and other dividends on the company's preferred and common stock. The $30 million revolving credit facility is expected to remain unused at debt issuance and to be available for working capital or for other liquidity purposes.

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