Moody's upgrades SugarHouse

Moody's Investors Service said it upgraded SugarHouse HSP Gaming Prop. Mezz, LP's corporate family and probability of default ratings to B2 from B3.

Moody's also raised the company's second-lien notes to B2 from B3.

The outlook is stable.

Moody's said the upgrade considers the successful ramp-up of the company's SugarHouse Casino.

Since opening in September 2010, Moody's said SugarHouse has achieved substantial market share and win per unit statistics in Eastern Pennsylvania as well as a relatively high EBITDA margin demonstrating that its ramp-up was not only successful in terms of revenue, but also in terms of profitability.

Additionally, while a planned expansion is expected to keep the company's leverage high at more than five times, Moody's said it believes the expansion has favorable risk/reward characteristics that would ultimately enhance SugarHouse HSP's competitive position in terms of product quality and quantity and improve the company's longer-term earnings potential.

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