S&P cuts Caesars Entertainment to SGL-3

Moody's Investors Service said it lowered the speculative grade liquidity rating of Caesars Entertainment Corp. to SGL-3 from SGL-2, reflecting declining revolver availability and Moody's concerns that Caesars' earnings and cash flow will remain under pressure causing the company's negative cash flow to worsen.

Caesars' liquidity profile is adequate. Caesars has a Caa1 corporate family rating and negative outlook.

The downgrade in Caesars' speculative grade liquidity rating to SGL-3 reflects the expiration of the company's $377 million revolving credit facility (undrawn at Sept. 30) in less than one year - on Jan. 28, 2014.

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