Moody's cuts Century Casino

Moody's Investors Service said it downgraded Century Casinos, Inc.'s senior secured bank credit facility and corporate family ratings to B3 from B2.The ratings are on review for further downgrade. Moody's also downgraded Century's speculative grade liquidity rating to SGL-2 from SGL-1.

The downgrade 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 agency said.

“On March 17, Century announced that it closed its Colorado casinos for the next 30 days to comply with a quarantine imposed by the governor of Colorado. Century's Colorado operating segment contributes about 10% of Century's net operating revenue and EBITDA. On March 18, Century announced that it temporarily closed its Canadian, West Virginia and Missouri casinos to comply with quarantines issued by governments,” Moody’s said in a press release.

“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 and other entertainment facilities, including at Century's gaming facilities, once this crisis subsides,” the agency said.

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