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S&P gives Diamond Resorts CCC+, notes B-
Standard & Poor's said it assigned Diamond Resorts Parent LLC its CCC+ corporate credit rating.
At the same time, the agency said it placed the rating on Creditwatch with positive implications.
In addition, the agency said it assigned the company's proposed $425 million senior secured notes due 2018 its preliminary issue-level rating of B- with a preliminary recovery rating of 4.
The company plans to use the proceeds from the proposed notes offering to repay its revolving, first-lien and second-lien credit facilities, and to bolster cash balances, the agency said.
According to S&P, the expected B- corporate credit rating reflects the company's somewhat weak EBITDA and funds from operations coverage of interest in the low- to mid-1x area and high debt leverage in the 6x to 7x area over the next few years.
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