Fitch rates Peninsula loan BB, notes CCC

Fitch Ratings said it assigned an issuer default rating of B to Peninsula Gaming, LLC and to Peninsula Gaming, Corp.

Fitch also said it assigned a BB with a recovery rating of RR1 rating to Peninsula's anticipated $875 million senior secured credit facility and CCC with a recovery rating of RR6 to $350 million in anticipated senior unsecured notes.

The notes will be issued by Boyd Acquisition Sub, LLC and Boyd Acquisition Finance Corp., which will be merged into Peninsula and Peninsula Gaming Corp, respectively, upon the consummation of the merger with Boyd Gaming Corp.

The outlook is stable.

The proceeds will partially fund the $1.45 billion acquisition, Fitch said.

The ratings reflect Peninsula's solid free cash flow profile, healthy liquidity profile and a desirable asset portfolio, the agency said.

Peninsula's credit profile also benefits from a degree of diversification relative to the company's revenue size, Fitch said.

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