Moody's may cut Greenwood

Moody's Investors Service said it placed on review for possible downgrade Greenwood Racing, Inc.'s corporate family and probability of default ratings of B2, along with the B1 (LGD 3, 40%) on its $265 million senior secured term loan due 2011.

The review is due to the company's weak liquidity stemming from near term refinancing risk, Moody's said.

Despite continued improvement in operating performance and conservative credit metrics, the agency cautioned that refinancing risk could trump otherwise solid fundamental rating factors and could result in significant downgrade actions if the company is not be able to resolve its refinancing needs within the next few weeks.

But Moody's said it does recognize its continued solid operating performance and strong credit metrics for the current rating.

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