S&P trims Montreign

S&P said it lowered its corporate credit rating on Montreign Operating Co. LLC to CCC+ from B-.

At the same time, S&P said it lowered the issue-level ratings on Montreign's term loans A and B to CCC+ from B-, in line with the downgrade of the company. The recovery rating on this debt remains 3, indicating an expectation for meaningful (50% to 70%; rounded estimate: 55%) recovery for lenders in the event of a payment default.

“The downgrade reflects the property's soft operating performance to date and the increasingly competitive Northeast gaming market in which Montreign operates. We believe these factors increase the likelihood that Montreign will generate significantly less EBITDA in its first full year of operations than we previously expected and could struggle to ramp up EBITDA to a level that comfortably covers all fixed charges,” S&P said in a news release.

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