S&P puts CCM Merger on negative watch

Standard & Poor's said it placed CCM Merger Inc.'s B+ corporate credit rating on CreditWatch with negative implications because of a decline in the operating performance of subsidiary MotorCity Casino during 2005 relative to the agency's expectations.

EBITDA performance in 2005 fell short of expectations partly due to a more competitive marketing environment in the Detroit market. S&P said it is concerned that total debt to EBITDA, which had been expected to peak above 7x in 2006 and subsequently decline in following years, may peak at levels too weak and decline at a pace too slow for current ratings.

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