S&P gives B rating to Eldorado Resorts notes

S&P said it affirmed its ratings, including its B+ issuer credit rating on Eldorado Resorts Inc. The outlook is stable.

At the same time, S&P assigned a B issue-level rating to Eldorado's proposed $600 million senior unsecured notes due 2026. The recovery rating is 5, reflecting an expectation for average (30%-50%; rounded estimate 25%) recovery for noteholders in a payment default.

“The affirmation reflects our forecast for pro forma adjusted leverage to improve to the mid-5x area in 2019 from the high-5x area in 2018, which we believe provides sufficient cushion relative to our 6x downgrade threshold to absorb some potential operating underperformance compared with our forecast over the next year,” S&P said in a news release.

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