Fitch assigns Empire Resorts B, notes B+

Fitch Ratings said it assigned an expected issuer default rating of B to Empire Resorts, Inc. and an expected B+/RR3 rating to Empire’s planned offering of $475 million of senior secured notes.

Empire’s B IDR reflects its stand-alone CCC+ IDR with a two-notch uplift related to its relationship with Genting Bhd., Fitch said. A Genting unit owns a 49% stake in Empire. The remaining 51% is owned by an investment vehicle owned by the family that controls Genting.

Fitch arrived at the B+ rating for the notes by forecasting in the event of a reorganization, the enterprise value would be roughly $270 million, after the deduction of expected administrative claims of 10%. “This results in a 51%-70% recovery band for the senior secured notes, which equates to +1 notching from the IDR to B+,” Fitch said in a press release.

The outlook is negative.

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