S&P lowers MTR notes

Standard & Poor's said it lowered its rating on MTR Gaming Group Inc.'s senior unsecured notes to B from B+.

The agency said that the rating downgrade is pursuant to the recent amendment of the company's credit facility (unrated), which increased the total commitment to $155 million from $105 million, adding that the issue rating downgrade reflects the increased amount of senior secured debt in the capital structure.

The incremental $50 million is expected to be used partly for completing the final stages of construction at Presque Isle Downs and other potential expansions, S&P noted.

Concurrently, S&P said it revised the rating outlook on MTR Gaming to stable from negative. Ratings on the company, including the B+ corporate credit rating, were affirmed.

According to the agency, the B+ rating on MTR reflects the competitive challenges facing Mountaineer Racetrack from the opening of gaming facilities in western Pennsylvania, a moderate-size cash flow base and relatively high levels of leverage.

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