S&P rates Downstream Development, notes B-

Standard & Poor's said it assigned its B- corporate credit rating to Downstream Development Authority established by the Quapaw Tribe of Oklahoma to operate the Downstream Casino Resort.

The outlook is negative.

At the same time, S&P said it assigned its B- rating to the Authority's proposed $235 million senior secured notes due 2015.

The agency added that proceeds from the notes, together with a committed $20 million furniture and equipment loan and planned vendor financing, will be used to fund the construction and development of the Downstream Casino Resort in northeast Oklahoma at the border of Missouri.

The agency said that the B- rating on the Authority reflects its view that the facility's border location is somewhat challenged, given a relatively small population in close proximity to the proposed resort, a high degree of competition and high pro forma debt levels based on our estimates for operating metrics.

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