S&P rates Eldorado notes B+

Standard & Poor's said it assigned its B+ rating to the $64.7 million 9% senior notes due 2014 to be issued jointly by Eldorado Resorts LLC and Eldorado Capital Corp.

Proceeds from the issuance of these notes and borrowings under the company's senior secured credit facility will be used to redeem the outstanding $64 million 10.5% senior subordinated notes due 2006.

At the same time, the B+ corporate credit rating was affirmed. The outlook is negative.

S&P said the ratings on Eldorado reflect limited cash flow diversity in operating a single property and negative market trends affecting the Reno market, particularly given the expansion of Native American gaming in northern California. These factors partially are offset by the property's good position within the market.

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