S&P lifts Rivers Pittsburgh, rates loan BB-, notes B

Standard & Poor's said it raised the corporate credit rating on Rivers Pittsburgh Borrower, the operator of the Rivers Casino in Pittsburgh, to B from CCC+ and removed the rating from CreditWatch, where it was placed with positive implications in May.

The outlook is stable.

The agency also said it assigned a BB- rating and 1 recovery rating to the company's new first-lien senior secured credit facilities, which consists of a $15 million revolving credit facility and a $185 million term loan A, both due 2017.

S&P also said it assigned a B rating and 4 recovery rating to the company's $275 million second-lien senior secured notes due 2019.

The proceeds, along with about $65 million of cash on hand, will be used to repay its existing $302 million of first-lien debt and about $184 million of senior preferred paid-in-kind interests.

The company's refinancing creates a more sustainable capital structure and significantly reduces the company's total interest burden, S&P said.

The ratings also consider the company's weak business risk profile and highly leveraged financial risk profile, the agency said.

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