S&P puts Station Casinos on positive watch

Standard & Poor’s said it placed all of the ratings on Station Casinos LLC on CreditWatch with positive implications, including its B corporate credit rating.

The CreditWatch listing reflects an opinion that a successful initial public offering would reduce the risk that Station would incur additional leverage to buy out minority equity holders, including affiliates of Deutsche Bank, S&P said. The IPO will provide these holders with an alternative path to sell down their ownership over time, the agency said.

Red Rock Resorts, which will be the ultimate parent of Station Casinos, plans to raise about $496 million in the initial public offering, S&P said.

In resolving the CreditWatch listing, the agency said it will monitor the company’s progress in completing the IPO.

If the IPO is completed, the corporate credit rating and issue ratings will be upgraded two notches to BB-, S&P said.

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