AP reported that Moody's Investors Service is raising some of International Coal Group Inc's ratings, partly because of its substantial reserves and the potential for strong cash flow from operations.

Moody's said that it boosted International Coal's corporate family rating and probability of default rating two notches in junk status to B2 from Caa1. The coal mining operator's short term liquidity assessment was raised to SGL-2 from SGL-3.

In addition, the ratings agency lifted the USD 125 million ABL revolver due 2014 one notch in junk status to Ba2 from Ba3 and upgraded the ratings of its USD 200 million second lien notes due 2018 to B2 from Caa1.

The ratings affect about USD 325 million of debt in total. The outlook for the Scott Depot based company is Stable.

(Sourced from Associated Press)