S&P: United Auburn outlook positive

Standard & Poor's said it revised its outlook on the United Auburn Indian Community to positive from stable and affirmed its BB- corporate credit and senior secured debt ratings on the entity.

The outlook revision reflects S&P's assessment that, despite the property being open for less than one year its initial operating results have been solid, resulting in good credit measures for the rating. In addition, it is S&P's expectation that this trend is likely to continue in the near term.

S&P said the ratings for Auburn, Calif.-based UAIC reflect the company's reliance on a single source of cash flow and an evolving competitive landscape. These factors are offset by the initial strong performance of the property, its high quality, good market demographics, limited near-term competition in its surrounding area, and credit support in the form of a make-well agreement from Station Casinos Inc. (BB/stable/--). In addition, the project was completed in late 2003, which alleviates construction risks.

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