Moody's notes good gaming market in Detroit

Despite a slightly slower revenue growth-rate in the Detroit gaming market, growth prospects for the market are considered good because of strong market fundamentals that include high population density and limited competition, Moody's Investors Service said.

The year-to-date growth rate of 3.7% through May of 2006 is down slightly below the 4.1% compounded annual growth rate from 2001 through 2005.

Each of the three commercial casinos permitted to operate in Detroit (Greektown Casino, MotorCity Casino and MGM Grand Detroit) is significantly expanding to bring additional and improved gaming and non-gaming amenities, including hotel rooms, to the market over the next few years.

Moody's added that there are some risks to consider that could have a negative impact on both CCM's and Greektown's ratings, including heavy promotional activity, construction disruption and delays and some level of uncertainty with regards to the pace of post-construction ramp-up.

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