S&P gives American Energy-Marcellus loans B-, CCC

Standard & Poor's said it assigned its B- corporate credit rating to American Energy-Marcellus LLC.

The outlook is stable.

The agency also assigned its B- issue-level rating, with a 3 recovery rating, to the company's proposed $750 million first-lien term loan maturing in 2020.

In addition, S&P assigned its CCC issue-level rating, with a 6 recovery rating, to the company's proposed $450 million second-lien term loan maturing 2021.

"Our stable rating outlook reflects our expectation that AEM's operating cash flow, capital spending reserve, and additional equity commitments running to financial sponsors will be sufficient to fund planned capital spending over the next year and that the company will be successful in significantly expanding its production and reserves from initial levels," S&P credit analyst Scott Sprinzen said in a news release.

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