S&P ups Holdings Gaming

Standard & Poor's said that it raised the corporate credit rating on Holdings Gaming Borrower LP to CCC+ from CCC and removed the rating from CreditWatch, where it was placed with positive implications on July 26.

The outlook is stable.

S&P raised the issue-level rating on Holdings Gaming's $303.5 million term loan due June 2015 to CCC+ from CCC and maintained the recovery rating of 3 on the debt, indicating meaningful (50%-70%) recovery in the event of a payment default.

The upgrade reflects improved operating performance, largely due to the July 2010 addition of table games in Pennsylvania and the expectation that cash flow will remain sufficient to meet fixed charges in the intermediate term, the agency said.

Further, operating improvement likely better positions Holdings Gaming to potentially pursue a refinancing that would alleviate its current interest burden, the agency said.

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