S&P raises Seminole Hard Rock

S&P said it raised its ratings for Seminole Hard Rock Entertainment Inc. to BBB- from B+ and assigned a BBB- rating to its new senior secured credit facility. The issuer’s parent the Seminole Tribe of Florida, rated BBB by the agency, guarantees the facility.

Seminole Hard Rock bought the Mirage Hotel and Casino’s operations in December with a $1.1 billion capital contribution from its parent. The tribe also plans to contribute equity for the property’s future redevelopment into the Hard Rock Las Vegas.

“We believe the tribe's sizable equity contribution for the acquisition, its plan to use its cash flow to support the Mirage's redevelopment into an iconic Hard Rock branded casino hotel, and its recommitment to guarantee Hard Rock's debt demonstrates a stronger commitment to Hard Rock. As a result, we now view Hard Rock as highly strategic to the tribe,” S&P said in a press release.

The outlook is stable.

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