Moody's cuts CBAC Gaming

Moody's Investors Service said it downgraded CBAC Gaming, LLC's corporate family rating to Caa2 from Caa1 and probability of default rating to Caa2-PD from Caa1-PD. The agency cut the company's senior secured revolver and term loan to Caa2 from Caa1. The outlook is negative.

The downgrade of CBAC is in response to the disruption in casino visitation resulting from efforts to contain the spread of the coronavirus, including recommendations from federal, state and local governments to avoid gatherings and avoid non-essential travel.

These efforts include mandates to close casinos temporarily. 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 once this crisis subsides, the agency said.

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