Gaming briefs for March 28, 2005

Monday, March 28, 2005 | 10:47 a.m.

Resort owner's debt rated

Moody's Investors Service assigned a B3 rating to OpBiz LLC's $496 million senior secured term loan A and $10 million senior secured term loan B. Both term loans mature in 2010.

Moody's also assigned a B3 senior implied rating, Caa2 long-term issuer rating and SGL-3 speculative grade liquidity rating.

Proceeds from the bank facility were used to fund OpBiz's acquisition of the Aladdin resort in September 2004. The ratings outlook is stable.

The ratings are speculative grade, or "junk bond" status.

They consider that the company is dependent on cash flow from a single property that emerged from Chapter 11 bankruptcy and that the current owners have limited casino operating experience, Moody's said. The ratings also take into account the positive affiliation with the Planet Hollywood brand and the favorable market outlook for Las Vegas as well as recent improvement in Aladdin's financial results.

Ratings improve

Ratings agency Standard & Poor's Ratings Services last week revised its rating outlook on Station Casinos Inc. to "positive" from "stable." The company also confirmed its ratings on Station's BB corporate credit rating.

"The outlook revision reflects Station's solid operating performance in 2004 and continuing positive momentum in the first quarter of 2005," S&P analyst Michael Scerbo said in a statement. Station was able to use earnings to reduce debt last year, he said.

Gambling opponents urge governor to veto bills

ALBUQUERQUE -- The executive director of the New Mexico Coalition Against Gambling wants people to call Gov. Bill Richardson and urge him to veto a pair of gambling bills.

"If Gov. Richardson gets a few hundred phone calls asking him to veto these bills, he may feel pressured into doing it," Guy Clark said in a March 21 letter to 650 to 700 supporters.

One of the bills would authorize horse racetracks to extend the number of hours they operate slot machines from 12 to 18 daily. The total number of hours would be capped at 112 a week.

The other bill would grant discretion to state regulators to issue a gambling license to an applicant denied a gaming permit in another state or who had a license revoked.

Gil Gallegos, a spokesman for Richardson, said Friday the governor's office has received 10 to 12 responses about the gambling bills.

Richardson will be reviewing both bills, Gallegos said.

Federal judge dismisses challenge to tribal casino

LANSING, Mich. -- A federal judge has dismissed a lawsuit filed by an anti-casino group seeking to block the construction of a western Michigan casino.

U.S. District Judge James Robertson on Thursday dismissed the last remaining issue in the suit -- whether the Bureau of Indian Affairs adequately evaluated the environmental impact of developing the Berrien County casino.

The Pokagon Band of Potawatomi Indians said the ruling clears the ways for it to build the 144,000-square-foot Four Winds Casino Resort.