Moody's lowers Station Casinos

Moody's Investors Service said it downgraded Station Casinos, Inc.'s corporate family and probability-of-default ratings to B3 from B2 and its speculative grade liquidity rating to SGL-4 from SGL-2.

The agency also downgraded various classes of senior secured guaranteed bank revolving and term loan credit facilities to Ba3 from Ba2, senior unsecured notes to B3 from B2 and senior subordinated notes to Caa2 from Caa1.

Ratings remain on review for further downgrade.

According to Moody's, the downgrade is prompted by Station's weakening liquidity profile as well as the agency's expectation that given the material softness in the Las Vegas gaming market Station's credit metrics will deteriorate from already weak levels and reflect a credit profile more appropriate for a lower rating.

By year-end 2008, the issuer's debt-to-EBITDA ratio is expected to deteriorate to about 9.2 times.

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