S&P: American Casino & Entertainment on developing watch

Standard & Poor's said it placed its B+ corporate credit and senior secured debt ratings on American Casino & Entertainment Properties LLC on CreditWatch with developing implications.

The CreditWatch listing follows the announcement by American Casino & Entertainment's parent company, American Real Estate Partners LP (BB+/stable) that it is evaluating alternatives for refinancing, recapitalizing, or selling American Casino & Entertainment to maximize shareholder value, the agency said.

Developing implications suggest that ratings could be affected either positively or negatively, depending on whether a transaction ultimately occurs, S&P noted.

An example of a transaction that might have a positive impact would be an acquisition by a higher-rated entity, the agency said, noting that an example of a transaction that could have a negative impact might include a decision to increase debt levels to pursue an acquisition or a recapitalization, including a special dividend to the owner, which was contemplated during 2006.

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