Moody's trims Buena Vista

Moody's Investors Service said it downgraded Buena Vista Gaming Authority's corporate family and senior secured regular bond ratings to Caa2 from Caa1. The ratings are on review for further downgrade.

The downgrade to a Caa2 CFR is in response to the disruption in casino visitation resulting from efforts to contain the spread of the coronavirus, including Buena Vista's voluntary decision to close its Harrah's NorCal, a Class III gaming facility near Sacramento, Calif. on a temporary basis.

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 and other entertainment facilities, including Harrah's NorCal, once this crisis subsides. Buena Vista derives all its revenue and earnings from Harrah's NorCal.

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