Moody's cuts 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 Caa2 from Caa1.

The outlook remains negative.

The actions reflect Shingle Springs' weak liquidity and heightened default probability as a result of weaker than anticipated ramp-up for its sole gaming asset - the Red Hawk Casino near Sacramento, Moody's said.

Although Shingle Springs' recently reported quarterly EBITDA was relatively stable in part thanks to aggressive cost cutting, the agency said it remains concerned about the negative pressure on future revenue and earnings due to reduced gaming demand in Red Hawk's primary market.

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