S&P: Armstrong Energy notes B-

Standard & Poor's said it assigned a B- corporate credit rating to Armstrong Energy Inc., along with a B- rating to the company's proposed $200 million senior secured notes due 2019.

The recovery rating is 4, indicating 30% to 50% expected recovery in a default.

The outlook is stable.

The ratings consider the company's vulnerable business risk and highly leveraged financial risk profile, S&P said.

The ratings also reflect its participation in the competitive and highly cyclical coal industry, along with the weak industry conditions and the challenges of coal mining, which include price volatility, weather-related disruptions and increasingly stringent environmental and safety regulations, the agency said.

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