S&P lifts Seminole Tribe

S&P said it raised the issuer credit rating on the Seminole Tribe of Florida to BBB from BBB-.

The outlook is stable.

The upgrades reflect an expectation that, notwithstanding the unresolved dispute regarding the table game provision in its compact with the state of Florida, the tribe will be able to sustain leverage of less than the 3x downgrade threshold, S&P said.

The agency said it believes incentives exist for the state to negotiate a new compact with the tribe, including preserving revenue share payments with respect to table games and avoiding the loss of jobs if the tribe were forced to stop offering table games at its casinos.

S&P also said it believes it is increasingly unlikely that the state of Florida would pursue an expansion of commercial gaming that would impair Seminole's strong competitive position.

The agency said it believes the political climate does not support a meaningful gaming expansion, including potential destination resorts.

Many of the parties interested in pursuing expanded commercial gaming options in Florida have abandoned their lobbying efforts because they have determined it is not a politically viable option, S&P added.

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