Moody’s cuts Seminole Hard Rock

Moody’s Investors Service said it downgraded Seminole Hard Rock Entertainment, Inc.’s (SHRE) corporate family rating to Ba3 from Ba2, probability of default rating to B1-PD from Ba3-PD and senior secured term loan A rating to Ba3 from Ba2. All ratings have been placed under review for further downgrade.

"The downgrade reflects our expectation for a material deterioration in both earnings and credit metrics following the restrictions and closure of all SHRE’s restaurants, hotels and casino’s due to efforts to contain the spread of the coronavirus, " stated Bill Fahy, a Moody’s senior credit officer, in a press release.

The review for downgrade reflects the coronavirus could have a greater and more sustained effect on SHRE’s liquidity and overall credit profile and the potential for there to be more longer term impacts on consumers ability and willingness to spend on eating out, traveling and gaming, the agency said.

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