Moody's affirms 155 East Tropicana

Moody's Investors Service said it affirmed 155 East Tropicana, LLC's B3 corporate family rating, B3 rating on the company's $130 million 8¾% senior secured notes due 2012 and the SGL-3 speculative grade liquidity rating.

The outlook is stable.

Moody's said 155 East Tropicana's ratings acknowledge the slower-than-expected ramp-up following the opening of its Hooters Casino Hotel in February and need to achieve improvements in operating cash flow to meet future debt service requirements.

The ratings also take into account the small size and single asset profile of the company.

Positive ratings consideration is given to the Hooters brand name as well as the favorable historical growth pattern and future growth potential of the overall Las Vegas area gaming market, the agency added.

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