S&P ups Wynn Resorts

Standard & Poor's said that it raised the corporate credit ratings on Wynn Resorts Ltd. and its wholly owned subsidiary Wynn Las Vegas LLC to BB+ from BB and the issue-level rating on Wynn Las Vegas' senior secured notes to BBB- from BB+.

S&P maintained the recovery rating of 2 on the notes, indicating substantial (70% to 90%) recovery for note holders in the event of a payment default. S&P removed all ratings from CreditWatch, where they were placed with positive implications on April 20.

The upgrade reflects the belief that Wynn will maintain credit measures comfortably within the threshold for a BB+ corporate credit rating, the agency said.

The ratings consider capital spending associated with Wynn's planned Cotai, Macau development as well as continued sizable shareholder returns, the agency said. The ratings reflect the company's significant debt burden, high levels of competition in the Las Vegas and Macau gaming markets, and substantial expected debt-financed development spending in Cotai.

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