S&P rates Galaxy Casino loan B

Standard & Poor's said that it had assigned a B debt rating to Galaxy Casino SA's HK$9 billion six-year senior secured club loan facility, and placed the rating on CreditWatch with negative implications. The rating is subject to review of final documents. S&P also said it kept its B long-term corporate credit rating and B rating on the guaranteed senior notes issued by Galaxy Entertainment Finance Co. Ltd. on CreditWatch, where they were placed with negative implications in November.

The ratings were kept on CreditWatch pending Galaxy Casino's full redemption of its guaranteed senior notes and the completion of a club loan at the end of May 2010, S&P said.

The Galaxy Macau resort may continue to face execution risks and the company's financial flexibility could weaken if the resort's operating and financial performances fall below expectation, the agency said.

The company may be exposed to construction and execution risks for Galaxy Macau, S&P added.

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