S&P: Atlas America loan B+

Standard & Poor's said it assigned its B+ issue rating to a proposed $325 million senior secured term loan B due 2017 to be issued by Atlas Iron Ltd.'s U.S.-based special-purpose vehicle Atlas America Finance Inc.

At the same time, the agency said it assigned a recovery rating of 3 to the proposed issue. The recovery rating indicates its view of a meaningful recovery for creditors in the event of a payment default.

The agency said it equalized the issue rating with its long-term corporate credit rating on Atlas Iron.

S&P said the absence of existing debt ranking ahead of the senior secured term loan B, the agency's estimate of Atlas Iron's valuation in a default scenario and Australia's creditor-friendly insolvency regime support the recovery rating on the notes.

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