S&P rates Marina District B+, notes BB

Standard & Poor's said it assigned a B+ corporate credit rating to Marina District Development Co. LLC and a BB issue-level rating with a recovery rating of 1 to Marina District Finance Co. Inc.'s $800 million senior secured notes due 2015 and 2018. The notes will be guaranteed by Marina District Development.

The outlook is stable.

The company plans to use the proceeds, along with a draw of approximately $75 million under a new $150 million senior secured revolving credit facility, to refinance existing debt, pay an approximately $215 million dividend to Marina District Development's owners, and to fund transaction costs.

The agency said the B+ corporate credit rating reflects Marina District 's reliance on a single property for cash flow, the competitive dynamics in the Atlantic City region, S&P's expectation that the U.S. economy will only gradually improve over the next several quarters and increased debt leverage pro forma for the transaction.

The Borgata resort's relatively solid track record, the high quality and market-leading position of the property and the agency's expectation that credit measures will gradually improve over the next few years despite limited growth prospects only partially offset these negative factors, in S&P's view.

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