Moody's Snoqualmie stable

Moody's Investors Service said it revised Snoqualmie Entertainment Authority's outlook to stable from positive, while affirming its corporate family and probability of default ratings at Caa1 in response to the recent senior management turnover and weakened liquidity due to uncertainty in covenant compliance.

Moody's also affirmed the $130 million of floating rate senior notes due 2014 at Caa1 (LGD3, 43% from LGD3, 44%) and $200 million of 9 1/8% senior notes due 2015 at Caa1 (LGD3, 43% from LGD3, 44%).

The revision of outlook to stable from positive reflects the tempered near-term upgrade rating pressure as the likelihood of further operational improvement will be constrained by the distraction of senior management turnover, the agency said.

The outlook also consider the expectation that while the improvement may be less robust than originally anticipated, the transition in leadership would not result in meaningful deterioration in operating performance in the near term, the agency said.

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