Moody's rates Choctaw notes B1

Moody's Investors Service said it assigned a B1 rating to Choctaw Resort Development Enterprise's new $150 million senior notes due 2019.

Proceeds from the new notes, along with Choctaw's new $143.8 million Ba3 term loan, will be used to tender for its outstanding 9¼% senior notes due 2009 and refinance existing bank debt. The outlook is stable.

Moody's said Choctaw's rating considers its stable operating results and lack of competition in its immediate market area.

Positive rating consideration is also given to Choctaw's relatively low leverage. Pro forma for the new senior note and term loan, debt/EBITDA is about 2.5x.

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