S&P rates Yonkers Racing facilities BB, B+

S&P said it revised the outlook on Yonkers Racing Corp. to positive from stable, and affirmed all ratings, including its B corporate credit rating.

At the same time, the agency assigned a BB issue-level rating to the company's proposed $10 million first-out revolver due 2022. The recovery rating is 1+, reflecting an expectation for full recovery (rounded estimate: 100%) for lenders in the event of a payment default.

S&P also assigned a B+ issue-level rating to the proposed $260 million term loan B due 2024. The recovery rating is 2, reflecting an forecast for substantial recovery (70% to 90%; rounded estimate: 70%) for lenders in the event of a payment default.

Yonkers plans to use proceeds from the proposed term loan, along with cash on hand, to fully refinance its existing first- and second- lien term loans, and to pay modest transaction fees and expenses.

The agency plans to withdraw its issue-level and recovery ratings on the company's existing debt once it is fully repaid.

"The outlook revision to positive reflects our forecast for credit measures to continue to improve through 2017, due largely to debt reduction," S&P credit analyst Ariel Silverberg said in a news release.

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