S&P: Herbst view negative

Standard & Poor's said it revised the CreditWatch implications for ratings on Herbst Gaming Inc. (CCC corporate credit rating) to negative from developing.

According to S&P, the revision reflects statements by Herbst in its 10-K filing with the Securities and Exchange Commission that it received a "going-concern" qualification from its independent auditor, which constitutes an event of default under the credit agreement.

The company expects to enter discussions with lenders to negotiate a forbearance agreement as a result of the going concern opinion and the probable failure to comply with financial covenants through all of 2008, the agency said.

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