S&P cuts Suncoke revolver, notes

S&P said it lowered its issue-level rating on Suncoke Energy Inc.'s $150 million senior secured revolving credit facility due January 2018 to B from BB-.

The agency revised the recovery rating on the facility to 3 from 1, which indicates an expectation of meaningful (50% to 70%; lower end of the range) recovery in the event of a payment default.

At the same time, S&P downgraded the issue-level rating on the company's senior unsecured notes to CCC+ from B and revised the recovery rating to 6 from 3, which indicates an expectation of negligible (0% to 10%) recovery in the event of a payment default.

As of June 30, 2016 Suncoke had $20 million outstanding under the facility, with $100 million of additional borrowing availability after accounting for letters of credit. Other debt consisted of $44.6 million of 7 5/8% senior unsecured notes due 2019.

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