S&P cuts Station Casinos notes to D

Standard & Poor's said it lowered its issue-level rating on Station Casinos Inc.'s 6.875% senior subordinated notes to D from C.

The rating action reflects the missed March 1 interest payment on the notes, the agency noted, adding that a payment default has not occurred relative to the legal provisions of the notes, because there is a 30-day grace period to make the payment.

However, the agency said it considers a default to have occurred, even if a grace period exists, when the nonpayment is a function of the borrower being under financial stress - unless it is confident that the company will make the payment in full during the grace period.

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