S&P trims Mohegan Tribal Gaming

S&P said it lowered its issuer credit rating on Mohegan Tribal Gaming Authority to B- from B.

The outlook is stable.

At the same time, the agency lowered the issue-level rating on the senior secured credit facility to B- from B.

The agency also lowered its issue-level rating on Mohegan's senior unsecured notes one notch to CCC+ from B-.

Mohegan plans to increase its revolver commitment by $75 million and add $125 million to its term loan B to fund the purchase of its partner's interest in Inspire Integrated Resort Co. Ltd. and additional project-related investments at Inspire.

“We are forecasting credit measures to weaken meaningfully through fiscal 2020 because we will be fully consolidating the expected debt raises at Inspire to fund its development at a time when new competition in MTGA's primary market (Connecticut) will result in EBITDA declines,” S&P said in a news release.

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