Fitch: Caesars unchanged

Fitch Ratings said news of Caesars Entertainment Corp.'s plans to borrow $400 million of senior secured term loans has no ratings impact on long -term issuer default rating of CCC.

Also unaffected by these new loans includes Caesars Entertainment Operating Co.'s long-term issuer default rating of CCC, senior secured first-lien revolving credit facility and term loans rating of B with a recovery rating of RR2, senior secured first-lien notes rating of B with a recovery rating of RR2, senior secured second-lien notes rating of C with a recovery rating of RR6, senior unsecured notes rating (with subsidiary guarantees) of C with a recovery rating of RR6 and senior unsecured notes rating (without subsidiary guarantees) of C with a recovery rating of RR6.

Chester Downs and Marina LLC's long-term issuer default rating of B- and secured term loans rating of BB- also are unaffected.

The outlook is stable.

The transfer of assets out of Caesars Entertainment is a slight negative with respect to recovery prospects at Caesars Entertainment Operating in a default, Fitch said.

However, using those assets to secure project financing in order to complete a new project improves the operational recovery prospects for Caesars Entertainment Operating, the agency said.

This transaction is consistent with management's strategy of attempting to grow into the highly leveraged capital structure, rather than seeking to create a more sustainable capital structure by reducing debt, Fitch added.

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