S&P rates AGS, loan B

Standard & Poor's said it assigned its B corporate credit rating to AGS LLC.

The outlook is stable.

At the same time, S&P said it assigned its loan and recovery ratings to AGS's proposed $175 million first-lien senior secured credit facility, adding that the loan was rated B with a recovery rating of 3.

Proceeds from the proposed bank facility will be used primarily to refinance existing debt, fund a special dividend and fund advancements to be lent to two tribal customers for development projects, the agency noted.

According to S&P, the B corporate credit rating reflects AGS's dependence on Oklahoma for a substantial portion of net revenues, its concentrated customer base, its dependence on key personnel and the possibility of increased competition in the Oklahoma market over time and somewhat tempering these factors are AGS's relatively good position in the Oklahoma gaming market, good EBITDA margins and solid credit measures for the rating.

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