S&P cuts Majestic Star

Standard & Poor's said it lowered Majestic Star Casino LLC's corporate credit rating to CCC- from CCC+.

The outlook remains negative.

According to S&P, the downgrade reflects heightened concerns around Majestic Star's liquidity position and expectation that the company will breach its covenants in the near term.

As of June 30, credit measures were weak, the agency said, with a total debt-to-EBITDA ratio of more than 10x.

The CCC- rating reflects heightened concern about the company's ability to service its debt obligations over the next few quarters, its second-tier positions in highly competitive markets and limited flexibility to invest in its assets given weak credit metrics and poor cash flow generation, the agency said.

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