S&P rates Eldorado notes B+

Standard & Poor's said that it assigned a B+ corporate credit rating to Eldorado Resorts LLC and a B+ issue-level rating to the company's $180 million of senior secured notes due 2019. S&P also assigned the debt a recovery rating of 3, indicating the expectation of meaningful (50% to 70%) recovery for lenders in the event of a payment default.

The outlook is stable.

The company used proceeds from the notes and a $15 million senior secured term loan as well as some cash on hand, to repay its existing debt and preferred equity interests.

The B+ corporate credit rating reflects limited diversity and the fact that both of its properties are in relatively competitive markets, the agency said. Furthermore, the rating reflects the potential for additional competition in the longer term in Texas, which would meaningfully affect Eldorado's cash flow base.

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