Moody's introduces new ratings

Moody's Investors Service has introduced two new ratings: probability-of-default ratings and loss-given-default ratings.

The agency's current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The loss-given-default rating methodology will disaggregate these two key assessments in long-term ratings. The agency said the methodology will also enhance the consistency in its notching practices across industries and will improve the transparency and accuracy of its ratings, as Moody's research shows that credit losses on bank loans have tended to be lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations.

Loss-given-default assessments (or LGDs) are assigned to individual rated debt issues - loans, bonds and preferred stock - and express Moody's opinion of expected loss as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0%-9%) to LGD6 (loss anticipated to be 90%-100%).

Below is a list of the rating actions for Moody's rated companies, sorted by industry. The rating immediately after the company name denotes the corporate family rating and the percentages next to the LGDs represent the expected loss-given-default rates.

Gaming, lodging and leisure

Ameristar Casinos, Inc., Ba3; probability-of-default rating: B1; revolver and term loan, Ba3, LGD3, 36%.

BLB Management Services, B1; probability-of-default rating: B1; first-lien revolver and term loan, upgraded to Ba3 from B1, LGD3, 36%; second-lien term loan, downgraded to B3 from B2, LGD5, 88%.

Boyd Gaming Corp., Ba2; probability-of-default rating: Ba2; revolver and term loan, upgraded to Ba1 from Ba2, LGD2, 28%; notes, upgraded to Ba3 from B1, LGD5, 83%.

Carmike Cinemas, Inc., B2; probability-of-default rating: B3; revolver, term loan and delayed-draw term loan, upgraded to B1 from B2, LGD2, 29%.

CCM Merger Inc., B1; probability-of-default rating: B1; revolver and term loan, upgraded to Ba3 from B1, LGD3, 35%; notes, B3, LGD5, 88%.

Cedar Fair, LP, Ba3; probability-of-default rating: B1; revolver and term loan, Ba3, LGD3, 35%.

Century Theatres, Inc., Ba3; probability-of-default rating: B1; revolver and term loan, upgraded to Ba2 from Ba3, LGD2, 29%.

Choctaw Resort Development Enterprise, Ba2; probability-of-default rating: Ba2; term loan, Ba2, LGD3, 44%; notes, upgraded to Ba2 from Ba3, LGD4, 57%.

Cinemark, Inc., B1; probability-of-default rating: B1; discount notes, upgraded to B3 from Caa1, LGD6, 92%. Cinemark USA, Inc., existing revolver and term loan, Ba2, LGD2, 27%; new revolver and term loan, upgraded to Ba1 from Ba3, LGD2, 11%; senior subordinated notes, upgraded to B2 from B3, LGD5, 74%;

Copa Casino of Mississippi, LLC, B3; probability-of-default rating: Caa1; revolver and term loan, B3, LGD3, 34%.

Greektown Holdings, LLC, B1; probability-of-default rating: B1; revolver and term loan, upgraded to Ba3 from B1, LGD3, 32%; notes, B3, LGD5, 89%.

Herbst Gaming, Inc., B1; probability-of-default rating: B1; revolver and term loan, upgraded to Ba1 from B1, LGD2, 16%; notes, B3, LGD5, 78%.

Hilton Hotels, Ba2; probability-of-default rating: Ba2; revolvers, term loans, minimum leases commitments, notes and convertible notes, Ba2, LGD4, 53%; senior unsecured debt shelf, prospective Ba2, LGD4, 53%; subordinated debt shelf, downgraded to prospective B1 from prospective Ba3, LGD6, 97%; preferred stock shelf, prospective B1, LGD6, 97%.

Hollywood Theaters, Inc., B2; probability-of-default rating: B2; revolver and term loan, upgraded to B1 from B2, LGD3, 41%; second-lien term loan, downgraded to Caa1 from B3, LGD5, 90%.

Isle of Capri Black Hawk LLC, B1; probability-of-default rating: B2; revolver and term loan, B1, LGD3, 34%; Isle of Capri Casinos, Inc., Ba3; probability-of-default rating: Ba3; revolver and term loan, upgraded to Ba1 from Ba2, LGD2, 18%; notes, upgraded to B1 from B2, LGD5, 76%.

Jacobs Entertainment, Inc., B2; probability-of-default rating: B2; revolver, term loan and delayed draw term loan, upgraded to Ba2 from B1, LGD2, 13%; notes, B3, LGD4, 69%.

Kerasotes Showplace Theatres, LLC, B2; probability-of-default rating: B3; revolver and term loan, B1, LGD2, 30%.

Las Vegas Sands Corp., Ba3; probability-of-default rating: Ba3; revolver, term loan and delayed draw term loan, upgraded to Ba2 from Ba3, LGD3, 39%; notes, downgraded to B2 from B1, LGD6, 90%.

Legends Gaming, LLC, B2; probability-of-default rating: B2; revolver and term loan, upgraded to B1 from B2, LGD3, 35%; second-lien term loan, Caa1, LGD5, 88%.

Marquee Holdings, Inc., B1; probability-of-default rating: B1; discount notes, upgraded to B3 from Caa1, LGD6, 95%. AMC Entertainment, Inc., revolver and term loan, upgraded to Ba1 from Ba3, LGD2, 11%; senior notes, upgraded to Ba3 from B2, LGD3, 35%; senior subordinated notes, B3, LGD5, 81%.

Mohegan Tribal Gaming Authority, Ba1; probability-of-default rating: Ba1; revolver, upgraded to Baa1 from Ba1, LGD2, 12%; senior notes, upgraded to Baa2 from Ba2, LGD2, 15%; senior subordinated notes, upgraded to Ba2 from Ba3, LGD4, 69%.

OpBiz, LLC, B3; probability-of-default rating: B3; term loans, upgraded to B2 from B3, LGD3, 40%.

Penn National Gaming, Inc., Ba2; probability-of-default rating: Ba2; revolver and term loans, Ba2, LGD3, 6 7/8% senior subordinated notes, downgraded to B1 from Ba3, LGD6, 91%; 6¾% senior subordinated notes, B1, LGD6, 95%.

Pinnacle Entertainment, Inc., B2; probability-of-default rating: B2; revolver, term loan and delayed draw term loan, B1, LGD3, 34%; notes, Caa1, LGD5, 87%.

Regal Entertainment Group, Ba3; probability-of-default rating: Ba3; convertible notes, upgraded to B2 from B3, LGD6, 95%. Regal Cinemas Corp., revolver and term loan, Ba2, LGD3, 40%.

Resorts International Holdings, LLC, Caa1; probability-of-default rating: Caa1; revolver and term loan, upgraded to B3 from Caa1, LGD3, 33%; second-lien term loan, downgraded to Caa3 from Caa2, LGD5, 86%. Resorts International Hotel and Casino, Inc., Caa1; probability-of-default rating: Caa1; first-mortgage notes, Caa1, LGD3, 49%.

Riverside Casino & Golf Resort LLC, B3; probability-of-default rating: Caa1; revolver and term loan, B3, LGD3, 35%.

Scientific Games Corp., Ba2; probability-of-default rating: Ba2; revolver and term loans, upgraded to Baa3 from Ba2, LGD2, 21%; notes, upgraded to Ba3 from B1, LGD5, 76%.

Seneca Gaming Corp., Ba2; probability-of-default rating: Ba1; notes, upgraded to Ba2 from Ba3, LGD4, 66%.

SFX Entertainment, Inc., B1; probability-of-default rating: B1; revolver and term loan, B1, LGD3, 48%.

Six Flags, Inc., B3; probability-of-default rating: B3; PIERS mandatorily convertible preferred stock, upgraded to Caa2 from Caa3, LGD6, 98%; notes, upgraded to Caa1 from Caa2, LGD5, 74%. Six Flags Theme Parks Inc., revolvers and term loan, upgraded to Ba3 from B1, LGD2, 16%.

Speedway Motorsports, Inc., Ba1; probability-of-default rating: Ba1; revolver, upgraded to Baa2 from Ba1, LGD2, 20%; notes, Ba2, LGD5, 75%.

Trump Entertainment Resorts Holdings, LP, B3; probability-of-default rating: B3; revolver, term loan and delayed draw term loan, upgraded to Ba3 from B2, LGD1, 9%; notes, Caa1, LGD4, 65%.

Universal City Florida Holding Co. I & II, B1; probability-of-default rating: B1; notes, B3, LGD5, 87%. Universal City Development Partners, Ltd., revolver and term loan, upgraded to Ba1 from Ba3, LGD2, 15%; notes, B2, LGD4, 57%.

Venetian Macao Ltd., B1; probability-of-default rating: B2; revolver, term loans and delayed draw term loan, B1, LGD3, 33%.

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