S&P affirms Eldorado Resorts

Standard & Poor's said it affirmed its ratings, including its B+ corporate credit rating, BB- senior secured bank loan and B+ senior unsecured rating on Eldorado Resorts LLC.

The outlook is negative.

S&P said the affirmation follows Eldorado's announcement Monday that it has entered into an agreement to acquire Hollywood Casino Shreveport. The acquisition and related financial transaction will be effectuated through a prepackaged Chapter 11 bankruptcy expected to be filed in the fourth quarter of this year.

The affirmation assumes that Hollywood Casino Shreveport will become an unrestricted subsidiary of Eldorado, the cash portion of the transaction that will be contributed by Eldorado will not be significant, Hollywood Casino Shreveport's debt will be non-recourse to Eldorado and that there will be little ongoing financial support provided to Hollywood Casino Shreveport by Eldorado, S&P said.

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