Moody's affirms Riviera, gives loan B2

Moody's Investors Service said it affirmed Riviera's B2 corporate family rating (CFR) and assigned ratings to several bank facilities, subject to final documentation, that will be used to refinance Riviera's $215 million of 11% senior secured notes.

The outlook is negative.

Ratings include the company's $20 million five-year senior secured, guaranteed revolving credit facility at B2, LGD4, 52% and the $225 million seven-year senior secured, guaranteed term loan at B2, LGD4, 52%.

The agency said that the proposed refinancing of the company's high coupon bonds with lower cost bank debt will have a positive impact on its credit profile.

Moody's noted that Riviera's ratings reflect above average leverage relative to its small scale and limited property diversification.

However, these risks are mitigated by improving operating margins, the location of the company's largest property in the favorable regulatory jurisdiction of Nevada and its location on the Las Vegas Strip, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.