S&P revises Churchill Downs note recovery

S&P said it affirmed the BB issue-level rating on Churchill Downs Inc.'s $600 million senior unsecured notes due 2021, and revised the recovery rating to 3 from 4, indicating expectations for meaningful recovery (50%-70%; rounded estimate: 50%) in the event of a default.

All other ratings on the company, including the BB corporate credit rating, are unchanged.

“The revision of the recovery rating reflects an increase in our gross enterprise value at default due to recently completed and planned capital improvement projects, which we believe will lead to higher future EBITDA levels than previously forecast, and more value available to unsecured noteholders in our simulated default scenario,” the agency said in a news release.

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