S&P rates Choctaw notes BB-

Standard & Poor's said it assigned its BB- rating to the Choctaw Resort Development Enterprise's proposed $150 million senior notes due 2019. The outlook is stable.

Proceeds from the proposed note issue, together with a new $143.8 million term loan, will be used to fund the previously announced tender offer for Choctaw's outstanding 9¼% senior notes due 2009, to refinance existing bank debt and for fees and expenses.

S&P said it also affirmed its existing ratings on Choctaw, including its BB issuer credit and senior secured debt and BB- senior unsecured debt ratings.

S&P said the ratings on Choctaw reflect its dependence on two connected casino facilities in Choctaw, Miss., and continued challenges associated with managing a larger casino and resort business since the opening of the Golden Moon Hotel and Casino in mid-2002.

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