Moody’s cuts CBAC, loans to Caa1

Moody's Investors Service said it downgraded CBAC Gaming, LLC's corporate family rating to Caa1 from B3, probability of default rating to Caa2-PD from Caa1-PD and senior secured revolver and term loans to Caa1 (LGD-3) from B3 (LGD-3), and assigned a negative outlook.

The downgrade and negative outlook reflects lower than Moody's expected EBITDA generated at the company's only casino property, Horseshoe Baltimore, in its first full year of operation, and high leverage (debt/EBITDA 8.2 times), Moody's analyst Peggy Holloway said in a news release.

Additionally, the risk that restructuring and litigation activity surrounding Caesars Entertainment Operating Co. and its parent, Caesars Entertainment Corp. could have a negative impact on CBAC contributed to this action.

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