Moody's rates Green Valley Ranch facility B1

Moody's Investors Service assigned a B1 rating to Green Valley Ranch Gaming LLC's proposed $250 million senior secured bank facility, a B1 senior implied rating, and a B2 senior unsecured issuer rating.

The outlook is stable.

Proceeds from the new facility will be used to fund the construction of a $115 million expansion project and refinance existing debt and equipment leases.

Moody's said the ratings consider the company's single asset profile, construction and delay risks typical of this type of project, and increased near-term leverage. Peak leverage over the construction period is estimated to be about 4.4x on a debt/EBITDA basis, and about 4.0x on a debt/EBITDA before management fee basis.

Station Casinos Inc. (Ba3/Stable) is the managing partner of the facility and collects an annual management fee.

Positive ratings consideration is given to the strong operating performance of the property, Station's successful track record of building, developing and managing hotel-casinos in the Las Vegas local market, and the good risk/reward profile of the project.

Moody's said Green Valley Ranch is ahead of its original operating plan for 2003 and has performed consistently with original budgeted amounts since opening in December 2001. The rating also takes into account the make-well agreement and construction completion guaranty supplied by Station and GCR Gaming LLC (not-rated). Station and GCR jointly developed the Green Valley Ranch Station Casino.

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