Fitch Ratings assigned first-time issuer-default ratings of BBB- to Gaming and Leisure Properties Inc. and GLP Capital LP, with a stable outlook.
The rating agency said the action was driven by the casino real estate investment trust's robust liquidity, stable cash flows and conservative financial policy. Fitch said Gaming and Leisure takes in rent revenues of 79%, 11% and 10%, respectively, under its master leases with Penn National Gaming Inc., Eldorado Resorts Inc. and Boyd Gaming Corp., pro forma, for its pending deals with those gaming companies.
Fitch added that the REIT is likely to operate through the cycle with leverage of lower than 5.5x, consistent with the BBB- rating. The rating, however, was partially hindered by Gaming and Leisure's relatively weaker-than-average contingent liquidity and tenant concentration.
Fitch also assigned a BBB- rating to GLP Capital's senior unsecured credit facility and senior unsecured notes.