Moody's cuts 155 East Tropicana

Moody's Investors Service said it lowered 155 East Tropicana LLC's probability-of-default rating to Ca/LD from Ca, as the company failed to make the interest payment to the holders of the 8¾% senior secured notes due 2012 prior to May 1, which was the expiration of the 30-day grace period.

The agency also downgraded 8¾% senior secured notes rating to C (LGD5, 72%) from Ca (LGD4, 56%). The corporate family rating was affirmed at Ca.

The outlook remains negative.

Moody's said the Ca/LD probability-of-default rating recognizes the payment default for the senior secured notes. At this time, 155 East Tropicana's obligations under its senior secured notes and secured revolver have not been accelerated, although no forbearance agreement has been executed yet.

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