Moody's downgrades CBAC

Moody's Investors Service said it downgraded CBAC Gaming, LLC's corporate family rating to Caa1 from B3, probability of default rating to Caa1-PD from B3-PD and senior secured revolving credit facility and term loan B to Caa1 from B3. The outlook is stable.

“The downgrade reflects weak operating performance trends and lower than expected EBITDA generated at the company's only casino property, Horseshoe Baltimore, with leverage sustained over 7x debt to EBITDA", said Moody's analyst, Adam McLaren, in a press release. Continued competitive pressure in the market from Live! Casino & Hotel as well as MGM National Harbor casino have led to steady declines in gross gaming revenue for CBAC, exceeding all downgrade triggers.

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