S&P lifts Ameristar loans to BBB-, notes to BB-

Standard & Poor's said it upgraded Ameristar Casinos Inc.'s 9¼% senior notes due 2014 to BB- from B+ and revised the recovery rating to 5 from 6. The company added $150 million to this issuance.

The company's senior secured credit facilities were upgraded to BBB- from BB+ and revised the recovery rating to 1 from 2.

The corporate credit rating remains unchanged at BB.

The outlook is stable.

"The issue-level and recovery rating changes on Ameristar's debt reflect the planned prepayment and permanent reduction in the commitment of the revolving credit facility by the amount of the net proceeds of the 9¼% notes," S&P analyst Melissa Long said in a statement.

The BB corporate credit rating reflects the competition in many of the company's markets, generally weak condition of the U.S. gaming industry and high debt leverage, according to the agency.

The company's relatively diversified portfolio of gaming operations, its leading market share in several of its markets and expectation that credit measures will improve over the intermediate term temper company weaknesses, the agency noted.

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