Moody's: Kalispel, loan B2

Moody's Investors Service said it assigned B2 corporate family and probability of default ratings to the Kalispel Tribal Economic Authority.

A B2 (LGD 4, 51%) rating also was assigned to the company's proposed $205 million six-year senior secured bank term loan and $5 million four-year senior secured revolver.

The outlook is stable.

The authority operates the tribe's Northern Quest Resort & Casino located near Spokane, Washington.

The proceeds from the proposed term loan will be used primarily to refinance the company's existing credit facility, Moody's said.

The ratings reflect the authority's single asset profile and small size in terms of revenue and cash flow, Moody's said.

The ratings also consider the unique risks common to Native American gaming issuers, the agency said. These risks include large annual cash distributions from the authority to the tribe and the high degree of uncertainty regarding the enforceability of claims, Moody's said.

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