Station Casinos LLC, the Las Vegas company now operating out of bankruptcy, received a speculative-grade "B" corporate credit rating Monday from debt rater Standard & Poor’s.
With about $2.5 billion in debt, down from $6.86 billion while it was bankrupt, the company emerging from the bankruptcy has a stable debt rating outlook, S&P said in its rating report.
"The stable outlook reflects our expectation that credit measures will remain in line with a 'B' rating over the intermediate term and that the company will use moderate levels of free cash flow to repay debt over the next few years," Standard & Poor’s said.
Given their volatility and debt levels, most casino operators have speculative ratings – with solid performer Wynn Resorts Ltd. among the few companies considered likely to achieve an investment grade rating in the near term.
Station, which hasn’t yet reported second quarter earnings, lost $11.8 million in the first quarter.
That was an improvement from a loss in the year-earlier quarter of $53.5 million.
Net revenue of $247.7 million in the quarter ended March 31 was off just slightly from $249.4 million in the year-ago quarter.