$300 million in bonds rated ‘B+’

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Wednesday, June 28, 2000 | 11:01 a.m.

Standard & Poor's assigned a 'B-plus' rating to $300 million in 10-year subordinated bonds expected to be issued by Station Casinos Inc. of Las Vegas. Proceeds from the bonds will be used to refinance existing bank debt.

S&P reaffirmed its "BB" corporate credit rating, "BB-plus" bank loan rating and "B-plus" subordinated debt rating on Station. S&P's rating outlook is positive.

Noting the company's strong position in the Las Vegas locals market, S&P said cash flow growth should continue over the intermediate term as Las Vegas' population swells. Growth in demand should be enough to absorb any competition from Coast Resorts' Suncoast property, opening near Summerlin later this year, S&P said.

In addition, S&P said Station's recent announcement that it would acquire the Santa Fe hotel-casino in northwest Las Vegas solidifies its position in the North Las Vegas market.