Moody’s trims Golden Nugget

Moody's Investors Service said it downgraded Golden Nugget, LLC's corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD.

Moody's also downgraded the company's senior secured bank credit facilities to B2 from B1, senior unsecured notes rating to Caa2 from Caa1 and senior subordinated note rating to Caa3 from Caa2.

The outlook is negative.

“The downgrade reflects that Golden Nugget's credit metrics and asset value are set to materially weaken as they increase debt levels and remove assets from the restricted group at a time of significant earnings and cash flow pressures as a result of coronavirus pandemic related restaurant and casino closures,” Bill Fahy, Moody's senior credit officer, said in a news release.

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