S&P: No change for Seminole Tribe

Standard & Poor's said its BBB- credit rating and stable outlook on the Seminole Tribe of Florida are not affected following the Tribe's announcement of its intention to execute a nonbinding Letter of Intent with Power Plant Entertainment LLC and The Cordish Co. to resolve all litigation between the parties, including the ongoing dispute with Power Plant Entertainment.

Under the letter's terms the tribe will provide Power Plant Entertainment a 22-year loan in the amount of $525 million, which will be repaid by the advisory fees paid to Power Plant, which will be reduced forwarding the future, the agency said.

The modest financial profile of the tribe, which has been the result of the favorable competitive position of its gaming operations in the capacity-constrained Florida market, provides adequate financial flexibility to absorb the increased debt associated with the loan, S&P said. The successful resolution of the dispute with Power Plant Entertainment removes an overhang that was limiting ratings upside in the future, the agency added.

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