S&P rates Holdings Gaming loans BB-, CCC+

Standard & Poor's said it assigned a B corporate credit rating to Holdings Gaming Borrower LP.

The agency assigned BB- ratings with a recovery rating of 1 to the company's $10 million revolving credit facility and $305 million first-out term loan, and CCC+ rating with a recovery rating of 6 to the $130 million first-loss term loan.

The rating outlook is negative.

Proceeds from the proposed first-lien credit facilities, combined with a $150 million second-lien term loan (unrated) and $170 million of preferred equity will be used to refinance an existing bridge loan, establish reserve accounts and fund construction of a casino in Pittsburgh, Pa.

The B corporate credit rating reflects the company's narrow business position as an operator of a single casino, significant fixed-charge burden and startup risks associated with the planned facility, the agency said.

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