S&P gives Kerzner notes B

Standard & Poor's said it assigned its B rating to Kerzner International Ltd.'s proposed $400 million senior subordinated notes due 2015.

At the same time, S&P said it affirmed its ratings, including its BB- corporate credit rating, on the company. The outlook remains stable.

S&P said the ratings on Kerzner reflect a high cash-flow concentration from Paradise Island, an active growth strategy, the company's increasing number of unconsolidated joint venture projects which often have limited publicly available information and the expectation that credit measures will weaken meaningfully from current levels as the company funds various growth opportunities.

These factors are tempered by the steady operating performance of its Paradise Island, Bahamas, operations, the company's good position as a manager of luxury resort hotels and the expected reliable cash flow stream stemming from its relationship with the Mohegan Sun casino in Connecticut, the agency added.

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