Moody’s upgrades debt

Monday, Jan. 26, 2004 | 11:03 a.m.

Debt rating agency Moody's Investors Service upgraded the ratings of several of Station Casinos Inc.'s debt offerings based on factors including Station's "leverage improvement, good internal and external growth prospects, highly successful Thunder Valley Casino opening and strong development track record."

The upgrade announcement followed this month's conference call with analysts during which Station executives outlined new casinos in the pipeline and detailed cash flow growth for the next few years.

The company's senior implied rating was upgraded to Ba2 from Ba3, $400 million in senior unsecured notes due 2008 were upgraded to Ba3 from B1, $200 million in senior subordinated notes due 2010 were upgraded to B1 from B2, $375 million in senior subordinated notes due 2010 were upgraded to B1 from B2, the senior unsecured issuer rating was upgraded to Ba3 from B1 and the speculative grade liquidity rating was confirmed at SGL-2. All the ratings were at the high end of the speculative grade category, or junk bond class.

Moody's also assigned a B1 rating to Station's proposed $400 million debt offering of senior subordinated notes due 2014. The agency said that Station's overall outlook remains stable.