Fitch ups Wynn Las Vegas, rates notes BB+

Fitch Ratings said it assigned to Wynn Las Vegas, LLC's $1.32 billion 7¾% first mortgage notes due 2020 a BB+ rating and upgraded its issuer default rating to BB- from B+ along with Wynn Resorts, Ltd.'s issuer default rating to BB- from B+.

The agency also affirmed Wynn Las Vegas' senior secured bank credit facility at BB and senior secured first mortgage notes at BB. Wynn Resorts (Macau), SA's issuer default rating also was upgraded to BB- from B+, and its senior secured bank credit facility was affirmed at BB+.

The outlook was revised to stable from positive.

The upgrades reflect stronger-than-expected performance at Wynn Macau SA since October 2009, Fitch said, and the improved maturity profile at Wynn LV LLC following the refinancing of $1.32 billion of first mortgage notes due 2014 with the new issuance of the 10-year 7¾% first mortgage notes due 2020.

The ratings reflect the company's high consolidated gross leverage in its Las Vegas subsidiary, a lack of diversification, an expectation of a muted recovery in Las Vegas over the near-term and development risk, the agency said.

The ratings are supported by the company's strong liquidity position, including a solid free cash flow profile, minimal near-term maturities and demonstrated capital market access, Fitch said.

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