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S&P rates American Casino loans BB, BB-
Standard & Poor's said it placed it B corporate credit rating on American Casino & Entertainment Properties LLC on CreditWatch with positive implications.
In addition, S&P assigned the company's proposed $230 million senior secured credit facilities a preliminary issue-level rating of BB with a preliminary recovery rating of 1, indicating an expectation for very high (90% to 100%) recovery for lenders in the event of a payment default.
The proposed facilities consist of a $15 million senior secured revolver due 2018 and a $215 million senior secured term loan due 2020.
At the same time, S&P assigned the company's $120 million second-lien term loan a preliminary B- issue-level rating, with a preliminary recovery rating of 6, indicating an expectation for negligible (0 to 10%) recovery for lenders in the event of default.
"The CreditWatch listing reflects our expectation that we will raise our corporate credit rating on ACEP to B+ after the transaction closes. The B+ rating would reflect our reassessment of the company's financial risk profile as 'aggressive' from 'highly leveraged,'" S&P said in a news release.
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