S&P lifts CBAC Borrower, unit of Caesars Entertainment

S&P said it raised its issuer credit rating on CBAC Borrower LLC, a subsidiary of Caesars Entertainment Inc., to B from B-.

At the same time, S&P also raised the issue-level rating on CBAC's senior secured credit facility by one notch, to B from B-. The 3 recovery rating reflects an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery for lenders in a payment default.

The outlook is stable.

“The stable outlook reflects our expectation that, even though CBAC's leverage will remain above 7x through 2023, its EBITDA will cover its fixed charges and enable it to maintain sufficient liquidity through the year. It also incorporates our expectation that Caesars would provide support to CBAC, if necessary, because of its strategic importance,” S&P said in a news release.

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