S&P rates Station Casinos notes BB-

Standard & Poor's said it assigned its BB- rating to Station Casinos Inc.'s $450 million senior notes due April 1, 2012 and affirmed its ratings, including its BB corporate credit rating on the company.

The outlook is stable.

Proceeds from the notes will be used to redeem the company's $400 million 8.375% senior notes due Feb. 15, 2008, and to pay fees and expenses associated with the offering.

S&P said ratings reflect Station's leading position in the favorable Las Vegas "locals" market, solid operating and development track record, recently good operating results, and the expectation that this trend will continue over the intermediate term. Also, the company's management fee generated from Thunder Valley is likely to exceed previous expectations and enhance Station's ability to generate discretionary cash flow.

These factors are offset by competitive market conditions in the locals market, and a relatively aggressive financial policy.

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