Moody's drops Mashantucket

Moody's Investors Service said it downgraded the ratings of the Mashantucket (Western) Pequot Tribal Nation and placed its ratings on review for further possible downgrade.

The downgrade is in response to what Moody's said it believes will be an increasingly difficult operating environment for the Tribe in 2009, which will negatively impact earnings, cash flow and credit metrics.

The Tribe owns and operates the Foxwood's Resort Casino in Connecticut, the agency said.

Moody's added that the following ratings were lowered and placed on review for further possible downgrade: corporate family rating to Ba3 from Ba2, probability of default rating to Ba3 from Ba2, special revenue obligations to Ba2 from Ba1, subordinated special revenue obligations to B1 from Ba3 and 2007 series A notes to B2 from B1.

A continued decline in the Tribe's monthly gross slot win trend suggests that as the economy weakens, earnings pressure - already considered severe - will become more intense, Moody's said.

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