S&P cuts Shingle Springs Tribal to CCC

Standard & Poor's said it lowered Shingle Springs Tribal Gaming Authority's issuer credit rating to CCC from B- and removed the ratings from CreditWatch, where they were placed with negative implications on Oct. 8, 2009.

The outlook is negative.

"The ratings downgrade reflects continued weakness in operating performance, as the Red Hawk Casino is underperforming our expectations following its opening in December 2008," S&P analyst Melissa Long said in a statement.

"Furthermore, we believe that the opening of an expansion at the closest competing gaming facility -Thunder Valley Casino in Lincoln, Calif. - will negatively affect operating performance in 2010."

The CCC rating reflects the authority's weak liquidity position, extremely thin covenant cushion, high debt leverage, well-established competition and a narrow business focus operating in a single market, the agency said.

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