S&P cuts Ameristar Casinos outlook to negative

Standard & Poor's said it revised its outlook for Ameristar Casinos Inc. to negative from stable.

Concurrently, the agency said it affirmed all ratings on the company, including the BB corporate credit rating.

The outlook revision follows Ameristar's announcement today that it has entered into a definitive agreement with Resorts International Holdings LLC to acquire its subsidiary that owns and operates Resorts East Chicago for $675 million in cash, subject to satisfactory completion of due diligence, receipt of regulatory approvals and other customer closing conditions, S&P said.

According to the agency, the rating on Ameristar Casinos reflects the company's high pro forma debt leverage, active growth strategy and cash flow concentration in Missouri while these factors are somewhat tempered by its good quality properties and leading positions in most of its markets.

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