Fitch lifts Caesars loans

Fitch Ratings said it upgraded Caesars Entertainment Operating Co. Inc.’s senior secured credit facility to CCC+ with a recovery rating of RR1 from CCC with a recovery rating of RR2 following the finalization of the new guarantee and pledge agreement.

The agreement caps the amount of debt that Caesars Entertainment Corp. may guarantee at $8.35 billion, Fitch said.

The agency also said it affirmed the company’s first-lien notes at CCC with a recovery rating of RR2 and the more junior tranches at C with the recovery rating revised to RR6 from RR5.

The issuer default ratings for Caesars Entertainment Operating and Caesars Entertainment also were affirmed at CC.

The upgrades reflect Caesar Entertainment Operating’s new guarantee and pledge agreement, which caps the amount of debt that Caesar Entertainment may guarantee at $8.35 billion relative to about $5.3 billion of term loans and $19 billion of total debt outstanding at Caesars Entertainment Operating, the agency said.

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