OREANDA-NEWS. S&P Global Ratings today raised its issue-level rating on Coeur Mining Inc.'s senior unsecured notes to 'BB-' from 'B+'. We revised the recovery rating on the notes to '2' from '3'. The '2' recovery rating indicates our expectation for substantial (70% to 90%; higher end of the range) recovery of principal and interest in the event of a payment default.

The recovery rating revision reflects the company's $100 million debt repayment on its senior secured term loan due 2020 using proceeds from its recent $75 million equity offering as well as cash on hand.

In conjunction with this rating action, we will withdraw our rating on the company's senior secured term loan.

For the complete corporate credit rating rationale, see our research update on Coeur Mining Inc., published March 16, 2016, on RatingsDirect.

RECOVERY ANALYSIS

We have updated our recovery analysis on Coeur Mining to reflect the term loan repayment. We are revising the recovery rating on the senior unsecured notes to '2' from '3' following a review of the company's recovery profile. We continue to assess recovery prospects on the basis of a reorganization value of approximately $425 million, reflecting emergence EBITDA of $85 million and a 5x multiple to be consistent with other companies in the metals and mining industry. Our simulated default scenario contemplates a combination of a severe decline in gold and silver prices and higher mining costs. Our scenario also contemplates that the company's operating costs increase as a result of greater regulatory pressure and mining disruptions. Facing declining revenues and margin compression, the company finds itself funding operating losses and debt service with available cash. Eventually, the company's liquidity and capital resources become strained to the point where it cannot continue to operate absent a bankruptcy filing. Simulated default assumptionsYear of default: 2020Distressed EBITDA at emergence: $85 millionImplied enterprise valuation (EV) multiple: 5xImplied stressed valuation: $425 millionSimplified waterfallEstimated net enterprise value (after 5% administrative costs): $405 millionEstimated priority claims (capital leases): $43 millionEstimated net enterprise value available for unsecured debt: $345 million----------------------------------Estimated senior unsecured claims: $389 millionSenior unsecured notes recovery rating: '2' (70% to 90%; higher end of the range)Senior unsecured notes issue rating: 'BB-'Note: All debt amounts include six months of prepetition interest accrued.