S&P rates Opco, GVR loan B+

Standard & Poor's said it assigned Station Casinos LLC subsidiaries NP Opco LLC's and Station GVR Acquisition LLC's $775 million senior secured credit facility a B+ issue-level rating with a recovery rating of 2, indicating an expectation of substantial recovery for lenders in the event of a payment default.

According to S&P, as part of the transaction Station plans to merge GVR into Opco. However, until regulatory approvals are granted, GVR and Opco will be co-borrowers under the credit agreement.

S&P said the corporate credit rating reflects its assessment of Station's business risk profile as weak and its assessment of the company's financial risk profile as highly leveraged.

"We incorporate the credit quality of the consolidated Station Casinos LLC portfolio of properties and assets into our rating, despite the fact that different operating subsidiaries secure different pieces of the capital structure," said S&P credit analyst Michael Halchak in a news release.

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