S&P gives Marina District loans B+, BB-

Standard & Poor's said it assigned Marina District Development Co. LLC's proposed $380 million term loan due 2018 its B+ issue-level rating (one notch above the B corporate credit rating) with a 2 recovery rating, indicating an expectation for substantial (70% to 90%) recovery for lenders in the event of a payment default.

At the same time, the agency assigned the company's existing $60 million priority revolving credit facility due 2018 its BB- issue-level rating (two notches higher than the B corporate credit rating) with a 1 recovery rating, indicating an expectation for very high (90% to 100%) recovery for lenders in the event of a payment default.

All other ratings, including the B corporate credit rating, remain unchanged.

The outlook is stable.

The B corporate credit rating reflects the agency's view of the company's reliance on a single property for cash flow, in a declining Atlantic City casino market facing significant regional competition. The rating also reflects the expectation that the ratio of operating lease-adjusted debt to EBITDA will remain high, at above 6x through 2014.

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