Moody's lowers Shingle Springs

Moody's Investors Service said it lowered Shingle Springs Tribal Gaming Authority's corporate family, probability-of-default and senior notes ratings to Caa1 (LGD4, 50%) from B3 (LGD4, 52%).

The outlook was also revised to negative from stable.

The actions reflect the weaker-than-anticipated ramp-up for the recently opened casino due to severe economic challenges, expectation of high leverage at the end of the first year of operations and the risk of financial covenant violation under a loan, according to the agency.

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