S&P affirms Seminole Tribe

Standard & Poor's said it affirmed its ratings on the Seminole Tribe of Florida, including its BBB- issuer credit rating, following the announcement that it plans to acquire Hard Rock International Inc. and other related entities from The Rank Group Plc for $965 million.

Currently, the Tribe owns and operates two Seminole Hard Rock Hotels & Casinos in Tampa and Hollywood, Fla., under terms of a license agreement with HRI and licensing fees contributed by the Tribe have been in excess of 25% of Hard Rock's corporate profits, the agency said.

The outlook is negative.

S&P added that the ratings on the Tribe reflect the favorable competitive position of its gaming operations, which has led to solid performance and a modest financial profile.

Ratings also incorporate a high level of per capita distributions to tribal members, the agency said.

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