OREANDA-NEWS. S&P Global Ratings today said it affirmed all ratings on Placerville, Calif.-based Shingle Springs Tribal Gaming Authority, including the 'B+' issuer credit rating. The outlook remains stable.

"The affirmation reflects Shingle Springs' continued good operating performance coupled with debt repayment that is significantly ahead of our previous expectations," said S&P Global Ratings credit analyst Stephen Pagano.

As a result, credit measures are stronger under our current base-case forecast than in our prior forecast, resulting in an improved financial risk assessment. Under our current base-case forecast assumptions, we now expect leverage will improve to the low - to mid-2x area in 2016, compared to our previous expectation for leverage to remain in the 3x area through 2016. We also anticipate funds from operations (FFO) to debt to improve to the mid-30% area and EBITDA coverage of interest to improve to around 5x in 2016, compared to our previous expectations of the low-20% area and around 4x, respectively.

The stable outlook reflects our expectation for credit metrics to improve through 2017, largely driven by debt repayment that will more than offset a modest negative impact from the opening of an expansion at Shingle Springs' primary competitor in 2017. We anticipate adjusted leverage will improve to the low-2x area and EBITDA coverage of interest will improve to the high-5x area by 2017.