S&P rates Wynn loan BBB-

Standard & Poor’s said it assigned a BB+ corporate credit rating to Wynn America LLC, a subsidiary of Wynn Resorts Ltd.

The outlook is stable.

The agency also said it assigned a BBB- rating to Wynn America’s $1.25 billion credit facilities with a recovery rating of 2, indicating 70% to 90% expected default recovery.

The credit facilities are comprised of a $375 million revolving credit facility due Nov. 20, 2019 and $875 million delayed-draw term loan due Nov. 20, 2020.

The proceeds will be used primarily for the construction of a casino resort in Everett, Mass., S&P said, and for general corporate purposes.

Wynn America is considered a core entity of Wynn Resorts, the agency said.

The subsidiaries all operate in the same line of business, are integral to Wynn’s current identity and future strategy and are unlikely to be sold, S&P said.

The ratings reflect the group’s satisfactory business risk profile and significant financial risk profile, the agency said.

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