Moody's rates Wynn Las Vegas loan, notes B2

Moody's Investors Service said it assigned a B2 rating to Wynn Las Vegas LLC's $1.1 billion proposed senior secured bank credit facility and $1.1 billion first-mortgage notes due 2014.

Wynn's existing B2 senior implied rating, B2 secured bank facility rating, B3 second mortgage note rating and Caa1 long-term senior unsecured issuer rating were affirmed.

Proceeds from the first mortgage notes, along with a $400 million equity contribution from Wynn Resorts Ltd., the parent company of Wynn Las Vegas LLC, will be used to refinance Wynn's $472 million outstanding bank debt, $248 million second-mortgage notes, $198.5 million furniture, fixture & equipment loan and contribute about $500 million of cash to Wynn's balance sheet.

Moody's said Wynn's rating continues to reflect the ramp-up risk associated with the company's large scale casino project, as well as its single asset profile, significant reliance on destination travel and high-end gaming and ability to achieve projected returns.

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