Moody's lowers Station Casinos

Moody's Investors Service said it lowered Station Casinos, Inc.'s corporate family rating to Ba2 from Ba1, senior unsecured note rating to Ba3 from Ba2 and senior subordinated note rating to B1 from Ba3.

The outlook is stable.

Moody's said the downgrade is in response to the company's announcement that it entered into a bank loan amendment that allows for the repurchase of up to an additional $600 million of common stock and increases the maximum debt/EBITDA ratio to 6.5x from 5.5x.

These amendments indicate that Station, despite its strong asset profile and operating results, may not maintain debt/EBITDA at or below 4.5 times, the agency said.

The downgrade also assumes that Station will take full advantage of the additional $600 million share repurchase allowance.

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