Moody's rates American Casino B3

Moody's Investors Service said it assigned a B3 corporate family rating and probability of default rating to American Casino & Entertainment Properties, LLC.

Moody's said it also assigned a B3 rating to the company's proposed $375 million senior secured notes due 2014 and a speculative-grade liquidity rating of SGL-2.

Proceeds from the new notes will be used to repay the company's existing term loan, the agency said, noting that all ratings are subject to the receipt and review of final documentation.

The outlook is stable.

According to Moody's, the B3 corporate family rating reflects American Casino's small scale in terms of revenue, concentration in the Las Vegas market, and the expectation of continued weak gaming demand, particularly in Las Vegas, that could challenge the company's ability to reduce its high leverage in the near-term.

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