S&P rates Green Valley loans B+, CCC+

Standard & Poor's said it assigned its B+ bank loan rating and its 1 recovery rating to Green Valley Ranch Gaming LLC's proposed $530 million senior secured first-lien credit facility, reflecting the expectation lenders would likely achieve full recovery of principal in a payment default scenario.

At the same time, a CCC+ bank loan rating and 5 recovery rating were assigned to Green Valley's proposed $300 million senior secured second-lien term loan, reflecting the expectation lenders would likely achieve negligible recovery of principal in a payment default scenario.

Proceeds from the proposed bank facility will be used to refinance existing bank debt and to pay a special dividend to the company owners, S&P said, noting that in addition, a B issuer credit rating was assigned.

The outlook is stable.

The agency said that the ratings for Green Valley reflect the company's reliance on a single source of cash flow, competitive market conditions in the Las Vegas 'locals' market, a somewhat moderating operating environment and significantly higher debt balances and weaker credit measures due to the expected special dividend to owners.

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