S&P rates Cirsa Gaming bonds B+

Standard & Poor's said it assigned a B+ long-term issue rating to the proposed up to €400 million unsecured bonds maturing in 2018 to be issued by Cirsa Funding Luxembourg SA, a newly formed, fully owned finance subsidiary of Cirsa Gaming Corp. SA. The agency also assigned a recovery rating of 4 to this debt, reflecting its expectations of 30% to 50% recovery for creditors in the event of a default. The issue rating is the same as the corporate credit rating on Cirsa, the agency said.

The outlook is stable.

The proposed bond issue will only proceed if Cirsa manages to raise enough funds to reimburse its existing €270 million 2014 bonds and pay the related premium fees, as well as cover transaction costs associated with the new issuance, S&P said.

The agency said the proposed 2018 bonds will be unsecured and will benefit from operating-company guarantees representing about 45% of Cirsa's 2009 consolidated EBITDA, the agency said.

Successful issuance would simplify Cirsa's capital structure, in particular because both outstanding bond issues would benefit from identical guarantee packages, S&P said.

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