Moody's: Station notes Caa2

Moody's Investors Service said it assigned a Caa2 rating to Station Casinos LLC's senior unsecured notes due 2018 and upgraded the company's senior secured ratings to B2 from B3.

Moody's also affirmed Station's B3 corporate family and probability of default ratings.

The upgrade of Station's senior secured ratings reflects the conversion of the $625 million senior secured B-3 term loans due 2018 to unsecured senior notes due 2018 on substantially the same terms, the agency said.

Pursuant to Moody's loss given default methodology, the material increase in effectively junior debt in the company's capital structure improves the recovery prospects for the secured debt.

Conversely, the rating on the new unsecured notes reflects the large amount, about $1.6 billion, of senior ranking debt that reduces the recovery prospects for unsecured noteholders.

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