Moody's downgrades MTR

Moody's Investors Service said it downgraded the corporate family and probability-of-default ratings of MTR Gaming Group Inc. to B2 from B1.

The agency lowered the 9% senior subordinated notes due 2012 to Caa1 from B3 (LGD5, 87% from LGD5, 88%) and confirmed the B2 rating (LGD4, 55% from LGD4, 60%) of the 9¾% senior unsecured notes due 2010.

The outlook is stable. The action concludes the review for downgrade, which began on April 4.

According to Moody's, the downgrades reflect significant competitive challenges and constrained liquidity due to limited availability under the revolver and some financial covenant tightness.

The confirmation of the senior unsecured notes rating reflects the reduction of senior secured debt in the capital structure and the improved loss given default assessment for the senior unsecured debt, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.