Moody's rates Snoqualmie Entertainment notes B3

Moody's Investors Service said it assigned B3 corporate family and probability-of-default ratings to Snoqualmie Entertainment Authority and a B3 rating with a loss-given-default assessment of LGD4 to its $200 million fixed-rate senior notes and $120 million floating-rate senior notes.

The outlook is stable.

Proceeds from the new senior notes, along with a furniture, furnishings and equipment loan that the authority plans to obtain in the future, will be used primarily to fund the development and construction of Casino Snoqualmie, which will be owned and operated by the Snoqualmie Indian Tribe.

The agency said the authority's B3 corporate family rating considers its large, debt-financed ground-up development plans, pro forma small size and single-asset profile and the existence of seven Las Vegas-style casinos within 50 miles of Casino Snoqualmie's planned location. The rating also takes into account the fact that the tribe does not have any casino operating history or earnings and has never operated or managed a business comparable to Casino Snoqualmie.

Positive ratings consideration is given to the proposed casino's location and favorable market demographics, Moody's said: Casino Snoqualmie will be the only Las Vegas-style casino along the six-lane Interstate Highway 90 in western Washington and will be the closest Las Vegas-style casino to downtown Seattle, based on drive time.

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