S&P: Great Wolf to stable

Standard & Poor's said it revised the outlook on Great Wolf Resorts Inc. to stable from negative.

The agency also said it affirmed its B corporate credit rating and BB- issue-level rating.

The outlook revision reflects a belief that Great Wolf will likely sustain an adequate liquidity cushion in the form of cash balances and anticipated free cash flow over the intermediate term, S&P said.

The company also recently completed the refinancing of its existing $76.6 million mortgage loan due 2012 with a new $56 million mortgage due July 2014, the agency said, and funded the shortfall with about $20 million of cash.

The stable outlook incorporates the refinancing risk associated with the remaining 2012 Grand Mound joint venture maturity, S&P said.

The ratings also incorporate an expectation that the U.S. lodging industry will experience growth of 6% to 8% in 2011, the agency said.

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