Seminole Hard Rock Entertainment Inc.

We expect that, given their relationship, the Tribe would provide some financial support to Seminole Hard Rock, and that it has the financial strength to do so if the latter needed additional liquidity for acquisitions, development opportunities, or operating challenges. The Tribe has already demonstrated this support by guaranteeing Seminole Hard Rock's debt and making distributions for growth investments and acquisitions in recent years. The stable outlook reflects S&P Global Ratings' forecast for adjusted leverage to remain in the low- to mid-5x range through 2020. We believe this level of leverage provides a good cushion relative to our downgrade threshold for Seminole Hard Rock to withstand potential modest operating weakness without breaching the threshold. The stable rating outlook is also

...Seminole Hard Rock Entertainment Inc. will likely continue to prioritize development spending by potentially incurring additional leverage to expand its portfolio. We believe Seminole Hard Rock will likely use the majority of its operating cash flow for development projects to expand its portfolio. We also believe the company could incur additional debt for the same purpose, and to invest in development opportunities, either through incremental funded debt or by entering into lease obligations, as evidenced by its acquisition of the operations of Hard Rock Cincinnati and the associated operating lease agreement with VICI Properties. Seminole Hard Rock's ultimate parent supports Hard Rock's investment spending because of its strategic importance. We believe Seminole Hard Rock is strategically important to the Seminole Tribe of Florida as demonstrated by the Tribe's willingness to guarantee Seminole Hard Rock's debt and to incur additional leverage at its gaming operations to fund distributions...

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