Fitch rates PCI Gaming loan BBB-

Fitch Ratings said it assigned a first time BBB- issuer default rating to PCI Gaming Authority.

Fitch also said it assigned a rating of BBB- to PCI's announced issuance of a $1.4 billion senior secured credit facility, consisting of a $100 million revolver and $1.3 billion term loan.

The outlook is stable.

The ratings reflect PCI's strong credit metrics, favorable operating environment in Alabama and geographic diversification not typically seen in Native American gaming, Fitch said.

Geographic diversification will further improve with the pending acquisition of Sands Bethlehem in Pennsylvania, the agency said.

The ratings also consider the tribe's conservative financial policy and strong liquidity, Fitch said.

Gross leverage is 2.2x, pro forma for the Sands Bethlehem acquisition and is forecasted to decrease to less than 2x by 2020, the agency said.

Fitch said it expects a majority of free cash flow to be applied toward debt paydown through the forecast period, in excess of scheduled amortization.

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