S&P: Isle of Capri loan BB-

Standard & Poor's said it assigned a BB- rating to Isle of Capri Casinos Inc.'s $800 million senior secured credit facility. The rating is two notches higher than its B corporate credit rating.

The agency also said it assigned a recovery rating of 1 to the debt, indicating 90% to 100% expected recovery in a default. The new credit facility consists of a $300 million revolving credit facility and a $500 million term loan.

The proceeds will be used to repay term loan debt outstanding under its previous credit facility, S&P said.

The corporate credit rating remains unchanged at B.

The outlook is stable.

The ratings reflect Isle of Capri's highly leveraged capital structure and vulnerability to competitive pressures because of the second-tier market position of many of its properties, S&P said.

The company's geographically diverse portfolio, good interest coverage and limited near-term maturities partially offset these factors, the agency said.

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