S&P: River Rock notes B-

Standard & Poor's said it assigned a preliminary B- rating to River Rock Entertainment Authority's proposed $205 million senior notes consisting of $110 million series A senior notes due 2018 and $95 million series B tax-exempt senior notes due 2018.

The existing ratings on River Rock, including its B- issuer credit rating, remain on CreditWatch with negative implications, where it was placed in December, S&P said.

The proceeds will be used to refinance its existing senior notes and fund additional capital spending related to the development of an emergency access road, the agency said.

The watch listing reflects the company's near-term refinancing needs associated with its $200 million senior notes due Nov. 1, 2011, S&P said, as well as other debt held by the company.

The proposed refinancing transaction would address both debt issues, the agency said.

However, given the short timeframe within which to execute the proposed transaction, S&P said it would likely lower the rating into the CCC category if any hurdles arise that may prohibit a successful closing.

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