S&P rates CCM loan B+

Standard & Poor's said it assigned CCM Merger Inc.'s $635 million credit facility a B+ issue-level rating and a 2 recovery rating, indicating the expectation of substantial (70% to 90%) recovery for lenders in the event of a payment default.

S&P affirmed the B corporate credit rating.

The outlook is stable.

The facility consists of a $20 million senior secured revolving credit facility due 2016 and a $615 million senior secured term loan due 2017.

The company used proceeds from the issuance to repay its existing credit facility and its outstanding Michigan Strategic Fund bonds.

The ratings reflect CCM's narrow business focus as an operator of a single casino property in a highly competitive market, high leverage and challenging economic factors in the market in which the company operates, the agency said.

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