S&P gives East Valley, notes B+

Standard & Poor's said it assigned its B+ issuer credit rating to the East Valley Tourism Development Authority.

The outlook is stable.

The agency said it also assigned its B+ rating to the Authority's $290 million senior secured notes, which will be offered in two series, one fixed rate due in 2015 and the other floating rate due in 2014.

Proceeds from the issue will be used to refinance existing debt, build a full-service spa and 150 additional hotel rooms, make improvements to the existing casino and fund various payments to the Cabazon Tribe, the agency noted.

S&P said that the B+ corporate credit rating reflects the Authority's narrow business focus operating in a single market, the existence of well-established competition, the potential for expanded competition and the substantial expansion of the business beyond its previous scope while these factors are tempered by favorable recent operating results and the solid demographics of the market.

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