S&P rates Graton loan B+

Standard & Poor’s said it affirmed Graton Economic Development Authority’s B+ issuer credit rating.

The outlook is stable.

The agency also said it assigned a B+ rating to the $450 million senior secured credit facility, consisting of a $125 million revolving credit facility due 2019 and a $325 million term loan A due 2019.

The authority is a wholly owned unincorporated instrumentality of the Federated Indians of Graton Rancheria, S&P said.

The agency said it does not assign recovery ratings to Native American debt issues because there are significant uncertainties surrounding the exercise of creditor rights against a sovereign nation.

The ratings reflect the authority’s weak business risk profile and aggressive financial risk profile, S&P said.

The ratings also consider its reliance on a single asset to meet debt-service needs, the agency said.

However, S&P said it expects that the property will remain the highest-quality asset in proximity to the San Francisco market, a somewhat protected market position.

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