S&P ups Choctaw Resort outlook to positive

Standard & Poor's said it revised the Choctaw Resort Development Enterprise's outlook to positive from stable and affirmed the company's BB issuer credit and senior secured debt ratings and BB- senior unsecured debt rating.

The outlook revision reflects S&P's expectation that the company's credit profile will improve during fiscal 2006, as a portion of cash generated from a temporary increase in visitation is applied to permanently reduce debt balances, which were estimated to be about $285 million at Sept. 30.

The agency said it believes, however, that the current strong operating performance is directly related to the removal of gaming capacity along the Gulf Coast stemming from Hurricane Katrina and that the Choctaw Resort's operating performance will weaken in fiscal 2007 as Gulf Coast capacity returns.

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