S&P rates Galaxy Casino, notes B+

Standard & Poor's said it assigned its B+ long-term corporate credit rating to Galaxy Casino SA. The

outlook is stable.

At the same time, S&P said it assigned its B+ issue rating to proposed senior unsecured notes of $500 million to be issued by a Galaxy subsidiary, Galaxy Entertainment Finance Co. Ltd.

The agency noted the rating on Galaxy reflects the Macau casino operator's aggressive capital structure and expectations that it will have negative free cash flows over the next few years while also taking into account the company's unproven strategy in the mass market and competitive risks in the mass and VIP sectors.

S&P added these risks are partly offset by Galaxy's position as one of three casino concessionaires in Macau, the company's strategically located assets and the industry's high entry barriers.

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