| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers L > Headlines for Landry's Restaurants, Inc. > News item |
S&P cuts Golden Nugget, keeps Landry's on watch
Standard & Poor's said it kept Landry's Restaurants Inc.'s ratings on CreditWatch with negative implications, where they were placed on Jan. 28, and lowered subsidiary Golden Nugget Inc.'s corporate credit rating to B- from B.
The agency downgraded Golden Nugget's first-lien credit facility to B- from BB- with recovery rating revised to 3 from 1 and its $165 million second-lien term loan to CCC from B- with recovery rating revised to 6 from 5.
Landry's B corporate credit rating was affirmed. The outlook is stable.
Golden Nugget's B- corporate credit rating was affirmed. The outlook is negative.
Proceeds will be used to refinance its current debt.
"The downgrade of Golden Nugget stems from our concerns about the company's increased leverage during a weak operating environment and about its ability to remain in compliance with its covenants (absent financial support from its parent Landry's) in 2009 and 2010," S&P Charles Pinson-Rose said in a statement.
© 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.