S&P ups Cannery to stable

Standard & Poor's said it revised the outlook on Cannery Casino Resorts LLC to stable from negative and affirmed the B- corporate credit rating and all issue-level ratings on the company.

The outlook revision to stable reflects Cannery's outperformance relative to expectations in recent periods, the agency said.

The rating incorporates an expectation that EBITDA in 2011 will increase by about 10%, largely driven by performance assumptions for the company's Meadows Casino in Pennsylvania, the agency said.

The ratings reflect Cannery's highly leveraged financial profile, the competitive dynamics of the Las Vegas locals market and the expectation that the U.S. economy will only gradually improve over the next few years as well as the company's cash flow diversification from operating in two markets on opposite sides of the country and its experienced management team, the agency added.

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