Moody's cuts Station loans to Caa3

Moody's Investors Service said it downgraded Station Casinos, Inc.'s probability-of-default rating to D from Ca after the company said it voluntarily filed for Chapter 11 bankruptcy.

The company's senior secured revolver and term loan were downgraded to Caa3 (LGD 2, 21%) from B3 (LGD 2, 11%).

The agency affirmed the corporate family rating at Ca, senior unsecured notes at Ca (LGD4, 63% from LGD3, 49%), senior subordinated notes at C (LGD6, 90%) from (LGD5, 84%) and speculative grade liquidity rating at SGL-4.

Ratings reflect the severe challenges faced by Station and the gaming industry, the agency said.

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