S&P trims Pequot loan

S&P said it downgraded the Mashantucket (Western) Pequot Tribe’s term loan to D from CCC- after the tribe extended the loan’s maturity to Feb. 16 from Dec. 31, 2020.

“We view this action as distressed and tantamount to a default – rather than opportunistic – because, apart from this extension, the tribe would have faced the real possibility of a conventional default given its highly leveraged capital structure and weak operating performance,” the agency said in a press release.

S&P said it believes the tribe will probably not be able to refinance the loan because it cannot make full and timely debt service payments to its junior debtholders.

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