Moody's rates Mount Airy loans B2

Moody's Investors Service said it assigned a B2 (LGD3, 35%) rating to Mount Airy #1, LLC's $395 million 6-year term loan, $60 million 6-year delay draw term loan and $25 million 5-year revolver. The agency also assigned a B2 corporate family rating and B3 probability-of-default rating.

The outlook is stable.

Proceeds from $455 million bank credit facility will be used to fund the Mount Airy Casino Resort in the Pocono region of Pennsylvania.

The ratings are supported by the area's population density and demographics and the expectation that the casino will be built on time and on budget, Moody's said.

The ratings also recognize the start-up, single asset nature of the company and competition from existing and new casino facilities, the agency said.

The company's pro forma debt-to-EBITDA after a year of operation is likely to be at or below 5 times, the agency said.

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