Moody's cuts Holdings Gaming

Moody's Investors Service said it lowered Holdings Gaming Borrower LP's probability of default rating to Caa3/limited default from Caa3 following the completion of a restructuring, which Moody's views as a distressed exchange. The agency also said it affirmed the company's corporate family rating of Caa3 and assigned a Caa1 (LGD2, 23%) rating to the amended and restated $304 million first-lien term loan.

The outlook was revised to stable from negative.

The ratings reflect a view that in the long term, the company's capital structure may not be sustainable and may require further restructuring despite the modestly improved near-term liquidity, Moody's said.

The company's cash flow generation is likely to be weak, the agency said, and its current run-rate EBITDA will not likely be sufficient to cover all its fixed charges.

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