S&P ups Wynn debt to B+, rates loan, notes B+

Standard & Poor's said it raised its corporate and senior secured bank debt ratings for Wynn Resorts Ltd. and its wholly owned subsidiary Wynn Las Vegas LLC to B+ from B. The outlook is revised to stable from developing.

At the same time, S&P assigned its B+ rating to the proposed $1.1 billion senior secured credit facility for Wynn Las Vegas LLC and the proposed $1.1 billion first-mortgage notes due 2014 to be issued by Wynn Las Vegas LLC and its Wynn Las Vegas Capital Corp. subsidiary.

Proceeds from the proposed bank facility and note issue, in addition to $400 million to be contributed to Wynn Las Vegas LLC from the recently completed $453 million secondary equity offering at Wynn Resorts, will be used to refinance existing debt currently outstanding at Wynn Las Vegas LLC, to help fund the construction of Phase II at the Wynn Las Vegas property and for fees and expenses.

The upgrade reflects S&P's expectation that operating performance of newly constructed Wynn Las Vegas will be solid given its high-quality amenities, Steve Wynn's previous success in developing and operating properties in Las Vegas, the favorable operating momentum within the Las Vegas market and the expectation that this trend will continue in the intermediate term.

S&P said the ratings for Wynn Las Vegas LLC are based on the consolidated credit quality of the company's parent, publicly traded Wynn Resorts.

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