S&P cuts Marina District

Standard & Poor's said it lowered its corporate credit ratings on Marina District Development Co. LLC to B from B+. The outlook is stable.

"At the same time, we lowered our issue-level rating on wholly owned subsidiary Marina District Finance Co.'s senior secured notes due 2015 and 2018 to B+ (one notch above the corporate credit rating on MDDC), from BB-," said S&P credit analyst Melissa Long in a news release.

The recovery rating remains 2, reflecting an expectation for substantial recovery for noteholders in the event of a payment default.

S&P said the downgrade reflects weaker-than-anticipated operating performance in the second quarter at the company's Borgata Hotel Casino and Spa relative to S&P's full year expectations.

The downgrade also reflects S&P's belief that second-half performance will be challenged by a softening macroeconomic environment, as well as additional competitive pressures in the Atlantic City market.

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