S&P cuts Gateway Casinos

S&P said it lowered its rating on Gateway Casinos & Entertainment Ltd. to CCC from CCC+, its first-lien senior secured debt to CCC+ from B- and its second-lien secured notes to CC from CCC.

Gateway faces near-term refinancing risks related to the upcoming April 2022 maturity of $150 million held by its holding company GTWY Holdings Ltd. that owns a 100% equity interest in Gateway, the agency said.

“We expect the company will have a refinancing plan for its Holdco debt at least six months before maturity. If delayed, Gateway and the Holdco could experience refinancing risks if they face a higher interest rate or an uncertain credit market environment. The amortization of the Holdco debt already limits Gateway's financial flexibility and, based on current operations, we do not believe the company would be able to repay the Holdco debt through organic cash flow and existing liquidity,” S&P said in a press release.

The outlook is negative.

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