S&P ups Mohegan Tribal, finance agency

S&P said it raised its issuer ratings for Mohegan Tribal Gaming Authority and Mohegan Tribal Finance Authority to B- from CCC+. The agency also upgraded the gaming authority’s senior unsecured notes to CCC+ from CCC and removed the ratings from CreditWatch, where they were placed with positive watch on Jan. 13.

“The upgrade reflects MTGA's improved maturity profile, as the recent refinancing eliminated near-term refinancing risk and increased liquidity. MTGA recently refinanced its senior secured credit facility with $1.175 billion of new senior secured notes due 2026, and a new $263 million revolving credit facility due 2023. The refinancing eliminated near-term refinancing risk and improved MTGA's liquidity, including cash and revolver availability,” the agency said in a press release.

Pro forma for the transaction, S&P said it estimates MTGA had an unrestricted cash balance and revolver availability of about $260 million (pro forma for the refinancing transactions) as of Dec. 31, 2020.

The outlook is stable.

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