Press Release: Fitch Ratings on Santa Ana Pueblo's gaming enterprise

The 'BB' IDR reflects the strong financial flexibility of Santa Ana's enterprises and the stable market position maintained by Santa Ana's gaming enterprise in the competitive Albuquerque market. The Pueblo's Santa Ana Star casino continues to garner around 16% market share in the Albuquerque market based on state reported net slot win through the end of Sept. 30, 2013 (market share excludes the Downs racetrack casino).

Santa Ana's enterprises grew revenue by 1% in calendar 2013 and 5% in calendar fourth-quarter 2013 over the respective prior year periods. Santa Ana's revenue growth benefitted from the completion of a remodel of Santa Ana Star casino, which was finished in the calendar second-quarter 2013 and increased the casino floor capacity.

Santa Ana's revenues outperformed other tribal casinos in the Albuquerque market as it was less affected by a casino expansion at the Downs, which opened in August 2013 with 700 slot machines. In calendar third-quarter 2013, the last quarter reported by the state, Santa Ana's slot revenues grew 1% relative to a 4% market-wide decline (excluding the Downs). Santa Ana is more cushioned against competition relative to its market peers as it focuses on the locals business in city of Rio Rancho, located northwest of Albuquerque, whereas the other casinos draw from the wider Albuquerque area.