S&P rates Lake at Las Vegas facility CCC+

Standard & Poor's said it assigned Lake at Las Vegas Joint Venture and LLV-1 LLC's $540 million secured credit facility a CCC+ bank loan rating with a 2 recovery rating.

The agency affirmed the corporate credit rating at CCC.

The new credit facility replaces the company's $500 million credit facility, which had a CCC+ rating and a recovery rating of 1.

The outlook remains negative.

The corporate credit ratings acknowledge the project's disappointing cash flow to date as land sales are hurt by the weak Las Vegas housing market, particularly for discretionary luxury second homes, according to the agency. The ratings also reflect the recent refinancing of the previous credit facility and the difficulty in executing that agreement, which is reflected in much higher borrowing costs, S&P said.

Concerns are partly mitigated by the company's underlying land values and infrastructure investments, the agency said.

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