Moody's: Seminole Hard Rock view negative

Moody's Investors Service said it changed Seminole Hard Rock Entertainment, Inc.'s outlook to negative from stable and affirmed its B1 corporate family and probability-of-default rating, $25 million senior secured revolver at B1 (LGD3, 48%) and $525 million senior secured notes due 2014 at B1 (LGD3, 48%).

The outlook change considers the recent deterioration in traffic patterns at the company's restaurants and its exposure to the slowdown in consumer spending on casual dining, according to the agency.

The outlook also considers the company's leverage with an adjusted debt-to-EBITDA ratio of 6.5 times for the 12 months ending Sept. 30, which remains significant and is higher than anticipated due to slower growth in EBITDA, Moody's said.

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