Moody's rates Wynn notes Ba2

Moody's Investors Service said it assigned a Ba2 rating (LGD3, 38%) to Wynn Las Vegas LLC and Wynn Las Vegas Capital Corp.'s $400 million 6.58% first mortgage notes due 2014.

The notes will be issued under the same indenture as the existing $1.3 billion 6.58% first mortgage notes, which were affirmed at Ba2 (LGD3, 38% from LGD3, 33%).

Also affirmed were Wynn Resorts Ltd.'s Ba3 corporate family and probability-of-default ratings and B2 rating (LGD6, 91%) on the $1 billion senior unsecured delay draw term loan due 2010.

The outlook is stable.

Proceeds will be used to fund the company's Encore development.

Moody's said the ratings reflect the Las Vegas and Macau gaming markets, improved consolidated financial and liquidity profile, and the company's reputation as a high-end resort developer and innovator.

Key credit concerns include the company's concentration in two gaming markets, large share repurchase authorization and expected negative cash flow until Encore is completed, the agency said.

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