S&P keeps Mountain Gods on negative watch

Standard & Poor's said its ratings on Inn of the Mountain Gods Resort and Casino, including its B corporate credit rating, remain on CreditWatch with negative implications.

The ratings were initially placed on CreditWatch after the issuer said it was not able to file its 10-Q for its first quarter ended July 31, 2005 by the extension filing date of Sept. 30, 2005, primarily due to the end-of-period turnover of key individuals in the financial department.

Although the company hosted an earnings conference call on Nov. 3 and filed its form 10-Q shortly thereafter, ratings remain on CreditWatch with negative implications due to weak operating performance, which has led EBITDA to decline 29% year over year during the three months ended July 31, 2005, S&P said.

In resolving the CreditWatch listing, S&P said it will discuss the situation with management to make the determination whether stabilization is likely in the fiscal third quarter. An assessment of the entity's liquidity position will also be a key ratings factor.

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