Fitch rates Caesars loan B-

Fitch Ratings said it assigned a CCC issuer default rating to Caesars Entertainment Corp.'s newly created subsidiary Octavius Tower & Project Linq Financing, which was created to facilitate the financing and development of the Octavius Tower and Project Linq.

Fitch also assigned a B-/RR3 rating to the new company's proposed $400 million senior secured term loan. The RR3 recovery rating implies good recovery prospects in event of default.

Fitch affirmed Caesars' issuer default rating at CCC, senior first-lien revolving credit facility and secured first-lien notes at B/RR2 and senior unsecured notes at C/RR6 and Chester Downs and Marina LLC's issuer default rating at B- and secured term loans at BB-.

The outlook is stable.

The affirmation reflects the Caesars' highly leveraged capital structure, weak free cash flow profile, deteriorating asset quality, limited organic growth profile and poor near-term market exposure profile, the agency said.

The ratings also recognize the company's solid liquidity position, minimal near-term debt maturities, industry-leading U.S. business profile and solid track record of acquiring and disposing of gaming assets, the agency added.

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