S&P: Wynn Resorts notes BB-

S&P said it assigned a BB- rating and 3 recovery rating to Wynn Resorts Ltd. subsidiaries and co-borrowers Wynn Las Vegas LLC's and Wynn Las Vegas Capital Corp.'s proposed $900 million senior notes due 2027.

The 3 recovery rating indicates 50% to 70% 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 as for the existing senior notes issues, the agency said.

S&P also said it lowered the ratings on Wynn Las Vegas' existing $1.8 billion senior notes due 2025 and $500 million senior notes due 2023 to BB- from BB and revised the recovery ratings on these notes to 3 from 2.

The agency also said it raised the ratings on Wynn Resorts subsidiary Wynn America's $1.375 billion senior secured credit facility to BB+ from BB and revised the recovery rating to 1 from 2.

S&P said it takes a consolidated view of credit quality at the parent level, but the various Wynn operating subsidiaries have separate financing structures and assets pledged as security in their lending arrangements.

The agency said it conducts separate recovery analyses for each financing subsidiary.

The agency said it does expect recovery prospects for Wynn Las Vegas noteholders to be impaired following the discharge of the 2022 notes indenture because a portion of Wynn Las Vegas' value will shift up to the Wynn America subsidiary from Wynn Las Vegas.

© 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.