S&P rates Wynn notes BBB-

Standard & Poor's said it assigned a BBB- rating to Wynn Resorts Ltd.'s proposed $500 million senior notes due 2023 with a recovery rating of 2, indicating 70% to 90% expected default recovery.

The notes will be secured by a first-priority pledge of Wynn Resorts' equity interest in Wynn Las Vegas LLC, which is the same security for the existing first-mortgage notes issues.

The notes will be co-issued by subsidiaries Wynn Las Vegas and Wynn Las Vegas Capital Corp.

The proceeds will be used to purchase its outstanding 7 7/8% first-mortgage notes due 2017 through a tender offering and to use any remaining net proceeds to redeem 2017 notes not tendered.

The company's BB+ corporate credit rating represents its satisfactory business risk profile and significant financial risk profile, S&P said.

The ratings also consider its leading presence in two of the largest global gaming markets, high-quality assets and well-known brand and an experienced management team, the agency said.

These business strengths are somewhat offset by the gaming industry's vulnerability to economic cycles given its discretionary nature and the high levels of competition in the Las Vegas and Macau gaming markets, S&P said.

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