S&P: Caesars on positive watch

S&P said it placed the ratings of Caesars Entertainment Corp. on CreditWatch with positive implications, along with the ratings of its subsidiaries Caesars Entertainment Resort Properties LLC and Chester Downs and Marina LLC.

The agency also said it revised the CreditWatch implications on the rating of Caesars Growth Properties Parent LLC to positive from negative.

The rating on Caesars Entertainment Operating Co. Inc., which is in Ch. 11 bankruptcy, remains at D.

S&P also said it discontinued the D ratings on Caesars Entertainment Operating's debt because as this debt will be refinanced with new debt in the near term.

The positive watch listings reflect the bankruptcy court’s confirmation and lender support of the restructuring plan that would put in place a long-term capital structure believed to be sustainable, the agency explained.

The company plans to reduce its consolidated debt levels by about $10 billion, the agency noted.

S&P also said it believes it is now unlikely that the group’s other companies will be pulled into a restructuring as a result of the ongoing bankruptcy of Caesars Entertainment Operating, the largest and most leveraged subsidiary.

The reorganization plan also eliminates existing litigation risk relating to the release of the parent guarantee and various asset transfer and financing transactions as the petitioners have agreed to dismiss these claims as part of the plan, S&P added.

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