S&P affirms Galaxy Casino

Standard & Poor's said it affirmed the B long-term corporate credit rating on Galaxy Casino SA, along with its B debt rating on the company's HK$9 billion club loan. Both ratings were removed from CreditWatch, where they were placed with negative implications in November. The agency also said it withdrew the B rating on the senior unsecured notes issued by Galaxy Entertainment Finance Co. Ltd. after their full redemption.

The outlook is negative.

The ratings reflect a view that Galaxy Casino's recent closing of its HK$9.0 billion club loan has improved the company's debt maturity profile and with improved terms compared with the redeemed bonds, S&P said.

The ratings also consider the company's satisfactory operating performance in the first quarter of 2010 and an expectation that its flagship hotel, StarWorld, should continue to perform well this year, the agency said.

The strengths are offset by Galaxy Casino's highly leveraged financial risk profile and the industry's reliance on the Chinese market for the bulk of its customers, S&P added.

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