Moody’s cuts CityCenter Holdings

Moody’s Investors Service said it downgraded CityCenter Holdings, LLC’s corporate family rating to B2 from B1 and probability of default rating to B2-PD from B1-PD. The agency downgraded the company’s senior secured revolver and term loan B to B2 from B1. The company’s speculative grade liquidity rating was downgraded to SGL-2 from SGL-1. The outlook is negative.

The downgrade is in response to the disruption in casino visitation resulting from efforts to contain the spread of the coronavirus including recommendations from federal, state and local governments to avoid gatherings and avoid non-essential travel. These efforts include mandates to close casinos temporarily.

The downgrade also reflects the negative effect on consumer income and wealth stemming from job losses and asset price declines, which will diminish discretionary resources to spend at casinos once this crisis subsides, Moody’s said.

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