Moody's may lower Tropicana

Moody's Investors Service said it placed on review for downgrade Tropicana Entertainment LLC's corporate family and probability-of-default ratings at B2, first-lien senior secured revolving credit facility and term loan at Ba3 (LGD2, 29%) and senior subordinated notes at Caa1 (LGD5, 84%).

The agency said the review is prompted by the company's non-compliance with the leverage covenant contained in its bank credit agreement, a thin liquidity cushion and continued weaker than expected earnings.

Moody's said it affirmed the company's SGL-3 rating reflecting its ability to meet debt service and capital requirements without tapping its revolving credit facility. The SGL rating could be downgraded, however, if the company is unable to amend its bank covenant and gain access to its revolving credit facility, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.