Moody’s: Cannery Casino to negative

Moody's Investors Service said it revised the rating outlook of Cannery Casino Resorts, LLC to negative from stable.

The company's B3 corporate family rating and B3-PD probability of default rating were affirmed, as were the B2 ratings on Cannery's first-lien term loan and revolver and the Caa2 rating on its second-lien term loan.

Moody’s said the outlook change reflects the company's declining revenue and EBITDA for the first six months of 2014 – down 6.3% and -11.6% respectively – and Moody's expectation that gaming demand will remain weak putting pressure on the company's covenant cushion. The Meadows Racetrack and Casino near Pittsburgh, which Cannery derives about 70% of its property-level EBITDA, has seen year-over-year declines in monthly gaming revenues due to lower visitation and competitive pressure from neighboring states. This has caused Cannery's leverage to increase above 8 times and EBITDA/interest to drop to 1.2 times.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.