Moody's snips Station Casinos

Moody's Investors Service said it downgraded Station Casinos LLC's corporate family rating to B2 from B1 and probability of default rating to B2-PD from B1-PD. The agency lowered the company's senior secured revolver and term loans to B1 from Ba3, and the company's senior unsecured notes to Caa1 from B3. The company's speculative grade liquidity rating was downgraded to SGL-2 from SGL-1. The outlook is negative.

Station's downgrade is in response to the disruption in casino visitation resulting from efforts to contain the spread of the coronavirus, including recommendations from federal, state and local governments to avoid gatherings and avoid non-essential travel.

These efforts include mandates to close casinos temporarily. The downgrade also reflects the negative effect on consumer income and wealth stemming from job losses and asset price declines, which will diminish discretionary resources to spend at casinos once this crisis subsides, the agency said.

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