S&P: Galaxy remains on negative watch

Standard & Poor's said that the ratings on Galaxy Casino SA will remain on CreditWatch while it finalizes the full review of the company's business plan and 2006 financial accounts.

S&P placed the B+ long-term corporate rating and B+ issue rating on CreditWatch with negative implications in December after the company's parent, Galaxy Entertainment Group Ltd., issued $240 million in

zero-coupon, zero-yield convertible notes due 2011.

S&P said its concerns focus on the potential for a significant increase in financial leverage and increased execution risk associated with the expansion of its major Macau project, the Cotai Mega Resort.

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