S&P rates Seminole Hard Rock loan BBB-

S&P said it affirmed its BB issuer credit rating on Seminole Hard Rock Entertainment Inc. and Seminole Hard Rock International LLC.

The outlook is stable.

At the same time, the agency assigned a BBB- issue-level rating to the company's proposed $650 million term loan A, one notch below the BBB issuer credit rating on parent Seminole Tribe of Florida, which passed a tribal resolution indicating it will guarantee the term loan.

“Although final terms of the guarantee are still subject to review and approval by the tribal council, the proposed terms indicate that the guarantee will be one of full payment and not of collection, that it will be unconditional and irrevocable, and that the guarantee will include the other required terms to qualify for rating substitution,” the agency said in a news release.

“Therefore, we base our issue-level rating on the creditworthiness of the guarantor.”

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