S&P puts Cannery Casino on positive watch

S&P said it placed the B rating and 2 recovery rating on Cannery Casino Resorts LLC's $20 million revolving credit facility and CCC rating and 6 recovery rating on Cannery's $165 million second-lien term loan on CreditWatch with positive implications following Cannery's repayment of debt.

The company repaid debt with proceeds from the sale of the Meadows Racetrack & Casino to Gaming & Leisure Properties Inc., S&P said.

The positive watch reflects the likelihood of improved recovery prospects for lenders on the remaining debt issues following the debt repayment, the agency said.

The company intends to sell its remaining assets to Boyd Gaming, a transaction anticipated before Dec. 31, S&P said, and the proceeds are expected to be sufficient to fully repay all of its remaining outstanding debt.

The agency also said it expects Cannery will dissolve the company following this asset sale and the ratings will be withdrawn.

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