Moody's assigns Alpha Natural loans B2

Moody's Investors Service said it assigned B2 ratings to Alpha Natural Resources, LLC's proposed $250 million five-year senior secured revolving credit facility and $250 million senior secured seven-year term loan B.

At the same time, Moody's said it affirmed the B3 rating on Alpha's $175 million senior notes due 2012 and its B2 corporate family rating as well as the SGL-2 speculative grade liquidity rating.

The outlook is stable.

The B2 corporate family rating reflects the amount of debt in Alpha's capital structure, anticipated stable long-term demand for coal, current high prices for metallurgical and steam coal, the company's low level of pension, black lung and OPEB obligations, Moody's said.

The ratings favorably reflect the improvement in Alpha's cash margins and anticipated free cash flow over the next 12 to 18 months, Moody's said.

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