Moody's lowers Golden Nugget

Moody's Investors Service said it downgraded Golden Nugget, LLC's corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD. Moody's also downgraded the company's senior secured bank credit facilities to B1 from Ba3, senior unsecured notes rating to Caa1 from B3 and senior subordinated note rating to Caa2 from Caa1. The outlook is negative.

"The downgrade reflects our expectation for a material deterioration in both earnings and credit metrics following the restrictions and closures across GN's restaurant base and casinos due to efforts to contain the spread of the coronavirus including recommendations from federal, state and local governments," said Bill Fahy, a Moody's senior credit officer, in a press release.

In response to these operating challenges and strengthen liquidity, Golden Nugget is focusing on reducing all non-essential operating expenses and discretionary capital spending. "While many restaurants are still able to continue to provide take-out, curbside pick-up and delivery, total restaurant sales will still be substantially below normal operating levels for the typical casual dining restaurant," said Fahy.

© 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.