Moody's upgrades Station Casinos, new notes rated B1

Moody's Investors Service said it upgraded the ratings of Station Casinos Inc. based on the company's leverage improvement, good internal and external growth prospects, highly successful Thunder Valley Casino opening, strong development track record, and the expectation that Station will proactively manage debt/EBITDA near 4.0 times, a level consistent with the Ba2 senior implied rating level given the company's current asset profile and investment opportunities.

Ratings upgraded include the company's $400 million 8.375% senior unsecured notes due 2008 to Ba3 from B1; the $200 million 8.875% senior subordinated notes due 2008 to B1 from B2; and the $375 million 9.875% senior subordinated notes due 2010 to B1 from B2.

Concurrently, Moody's said it assigned a B1 rating to Station's new $400 million 6.5% senior subordinated notes due 2014 and confirmed the company's SGL-2 rating.

The outlook is stable.

Proceeds from the new note offering will be used to tender for the company's $200 million 8.875% senior subordinated notes due 2008, reduce outstanding revolver borrowings, and for general corporate purposes.

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