Moody's: Gaylord view to negative

Moody's Investors Service said it affirmed Gaylord Entertainment Co.'s B3 corporate family rating and probability of default rating and Caa2 (LGD 5, 84%) senior unsecured ratings. The agency also said it downgraded its speculative-grade liquidity rating to SGL-3 from SGL-2.

The outlook was changed to negative from stable.

The downgrade reflects the significant cost to repair and re-open the Gaylord Opryland Resort, as well as the loss of earnings from this property, Fitch said. The agency said that will materially impact the company's liquidity over the near term.

Although Gaylord has about $190 million in cash and expects insurance proceeds of $50 million and a tax refund of about $30 million, this may be insufficient to cover the $270 million to $290 million cost to repair, operate and re-open the resort, the agency said.

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