Moody's may cut Mohegan Tribal

Moody's Investors Service said it placed on review for downgrade Mohegan Tribal Gaming Authority's Ba1 corporate family and probability-of-default ratings, Baa3 senior note rating and Ba2 senior subordinated note ratings.

Moody's said the review is in response to announced first quarter figures for EBITDA that were about 19% lower than the comparable prior-year period.

"This lower-than-expected EBITDA along with increased competition in the Northeast U.S., $1.1 billion of planned development activity in Pennsylvania and Connecticut combined, and a possible consumer-based recession, could make it more difficult for [the company] to achieve the post development debt-to-EBITDA target needed to maintain its current ratings, about 4 times," Keith Foley, senior credit officer at Moody's, said in a written statement.

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