Moody's: Seminole Hard Rock view stable

Moody's Investors Service said it revised Seminole Hard Rock Entertainment's outlook to stable from negative and affirmed its B2 corporate family rating and its senior secured notes due 2014 at B2 (LGD4, 50%).

The outlook revision reflects the Seminole Tribe of Florida's settlement without any material negative consequences of the National Indian Gaming Commission's notice of violations and the resolution of an Internal Revenue Service audit, according to the agency.

The company's debt-to-EBITDA ratio for the 12 months ended Sept. 30 was 6.1 times.

The B2 corporate family rating reflects Seminole Hard Rock's high leverage and exposure to soft consumer spending trends on leisure and entertainment as well as its modest scale and the fact that a majority of the company's revenue and EBITDA comes from a its company-owned cafes, the agency said.

Ratings support is provided by brand recognition, significant geographic diversification and the potential growth from fees coming from casinos branded with the Hard Rock name, 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.