S&P affirms Choctaw

Standard & Poor's said it affirmed its B- issuer credit rating on Choctaw Resort Development Enterprise, and removed the ratings from CreditWatch with developing implications, where they were placed on July 13. The outlook is developing.

"The B- issuer credit rating reflects our assessment of CRDE's financial risk profile as highly leveraged," said S&P credit analyst Ariel Silverberg in a news release, "given continued near-term refinancing risk following the amendment to CRDE's $70.1 million term loan, which extended the maturity to May 4, 2012 from Nov. 4, 2011."

In addition, the maturity of CRDE's $9 million revolving credit facility (unrated), which was drawn upon to help fund construction of the Bok Homa property, was extended to May 31, 2012 from Nov. 4, 2011. In addition, CRDE agreed to pay a 1% amendment fee and make a prepayment of 5% of the outstanding balance. The amendment also requires CRDE pay additional fees if certain milestone events do not occur over the next few months.

"Notwithstanding the additional interest expense and potential for further fees following the amendment, we expect CRDE's credit metrics will remain good for the rating over the intermediate term," said Silverberg.

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