S&P assigns American Casino B

Standard & Poor's said it assigned its B corporate credit rating to American Casino & Entertainment Properties LLC.

The outlook is stable.

At the same time, the agency said it assigned American Casino's proposed $375 million of senior secured notes an issue-level rating of B+, one notch higher than the B corporate credit rating, with a recovery rating of 2.

The company intends to use the proceeds from the notes offering to repay all outstanding amounts under its Goldman term loans, the agency added.

"The B corporate credit rating reflects the disadvantaged location on the Las Vegas Strip of its largest cash flow generating property, reliance on only two markets that are geographically close together, and its expectation that challenging operating conditions in the Las Vegas market will continue over the next several quarters," said S&P credit analyst Melissa Long.

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