S&P: Cannery Casino on watch

Standard & Poor’s said it placed all of the ratings, including the B- corporate credit rating, on Cannery Casino Resorts LLC on CreditWatch with negative implications.

The CreditWatch listing follows Cannery’s failure to secure an amendment to its credit facility after violating its consolidated total leverage covenants under both its first-lien and second-lien credit agreements, S&P said.

The company is engaged in ongoing discussions with its lending group to secure an amendment to its credit facilities to provide covenant relief, the agency said.

However, the discussions around a resolution are taking longer than previously expected, S&P said.

The CreditWatch listing also reflects a view that Cannery’s capital structure may be unsustainable over the long term if the company does not complete the sale of its Meadows property, the agency said.

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