S&P rates Affinity Gaming loans BB, notes B

Standard & Poor's said it assigned its BB issue-level and 1 recovery ratings to Affinity Gaming LLC's $35 million super priority revolving credit facility and $200 million senior secured term loan, due 2017 and 2019, respectively. The 1 recovery rating reflects an expectation for very high recovery for lenders in the event of a payment default.

The agency said it also assigned its B issue-level and 5 recovery ratings to Affinity's $200 million senior notes due 2020. The 5 recovery rating reflects an expectation of modest recovery for lenders in the event of a payment default.

The agency said it also recently raised its corporate credit rating on Affinity to B+ from B, reflecting S&P's assessment of Affinity's improved business profile following its recent asset sale and purchase transactions.

The agency said its assessment of Affinity's financial risk profile as aggressive incorporates its expectation that leverage will remain in the 4.5x to 5.5x area, pro forma for the refinancing and recent asset sale and purchase transactions.

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