S&P rates Ameristar notes B+

Standard & Poor's said it assigned its issue-level and recovery ratings to Ameristar Casinos Inc.'s planned $500 million senior unsecured notes due 2014.

The securities were rated B+, two notches lower than the BB corporate credit rating on the company, with a recovery rating of 6, the agency said.

The issue-level rating on Ameristar's senior secured credit facilities remains unchanged at BB+, S&P added, noting that the recovery rating on these loans remains at 2.

However, upon closing of the senior unsecured notes offering, the agency said that it plans to revise its recovery rating on the credit facilities to 1. This would lead S&P to raise its issue-level rating on these loans to BBB-.

According to the agency, Ameristar intends to use the proceeds from the senior unsecured notes to prepay the revolving credit facility and to permanently reduce the commitment by the amount of the offering.

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