S&P raises French Lick

Standard & Poor's said it raised its corporate credit rating on French Lick Resorts & Casino LLC to CC from SD.

The outlook is negative.

At the same time, the agency said it raised its issue-level rating on French Lick's senior notes to C from D while the rating upgrade reflects an assessment of the company's operating performance and capital structure following the successful tender for $127.9 million of principal amount, or 47%, of the $270 million mortgage notes.

S&P added that the C rating reflects French Lick's inability to meet its fixed obligations through internally generated funds and extremely weak credit measures, in part due to the company's relatively remote location, as well as increased competition following the June 2008 opening of two racinos in Indianapolis.

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