S&P: American Casino watch positive, notes B+

Standard & Poor's said it assigned its preliminary B+ issue-level and preliminary 3 recovery ratings to American Casino & Entertainment Properties LLC's proposed $310 million senior secured notes due 2019. The 3 recovery rating reflects expectation of meaningful recovery for lenders in the event of a payment default.

At the same time, the agency said it placed its B corporate credit rating on American Casino on CreditWatch with positive implications.

"The CreditWatch listing reflects our expectation that we will raise our corporate credit rating on ACEP to B+ after the transaction closes," said S&P credit analyst Michael Halchak in a news release.

The agency said the B+ rating would reflect its revision of the company's financial risk profile to aggressive from highly leveraged.

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