S&P keeps Station Casinos on watch

Standard & Poor's said it kept its ratings, including the BB- corporate credit rating, on Station Casinos Inc. on CreditWatch with negative implications, where they were placed Nov. 2, 2006.

As previously announced, the agency said it has determined that once potential barriers to the company's pending LBO deal have been eliminated, it will lower its existing ratings by one notch, bringing the corporate credit rating to B+.

In turn, the rating on the company's senior unsecured notes will be lowered to B from B+ and the rating on the subordinated notes will be lowered to B- from B, the agency added.

In addition, S&P said it assigned its issue level and recovery ratings to Station's proposed $900 million senior secured financing, a portion of which will be used to fund the LBO, adding that the secured bank facilities, which comprise a $650 million revolving credit facility and a $250 million term loan, are rated BB with a recovery rating of 1.

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