S&P: Boyd Gaming view negative

Standard & Poor's said it revised the outlook on Boyd Gaming Corp. to negative from stable. The BB corporate credit rating was affirmed.

"The outlook revision reflects our expectation that operating lease-adjusted leverage will spike to greater than 8 times in 2010, moderately higher than previously factored into the BB rating," S&P analyst Ben Bubeck said in a written statement.

The BB corporate credit rating reflects Boyd's aggressive growth strategy and heightened capital spending plans, which will drive a material weakening of credit measures, S&P said.

These factors are somewhat mitigated by the company's relatively diversified portfolio of gaming properties, which is expected to generate relatively steady cash flow over the long term despite current economic pressures, the agency noted.

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