S&P: Mohegan Tribal view negative

Standard & Poor's said it revised the outlook on Mohegan Tribal Gaming Authority to negative from stable and affirmed the BB- issuer credit rating.

The outlook revision reflects continuing softness in the Connecticut gaming market through the first half of fiscal 2008, the agency said.

The BB- rating reflects temporarily high debt leverage, an active growth strategy and limited cash flow diversity, S&P said.

These factors are tempered by the high quality of the resort in Connecticut, limited competition in each market and good initial results at the company's Pennsylvania property, the agency noted.

The issuer's total adjusted debt-to-EBITDA ratio is expected to peak at about high-6 times.

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