Fitch downgrades Caesars

Fitch Ratings said it downgraded Caesars Entertainment Operating Co., Inc.’s issuer default rating to D from C.

The downgrade reflects Caesars Entertainment Operating’s missed interest payment on its 10% second-lien notes, the recent expiration of the 30-day grace period and voluntary bankruptcy filing by the company, Fitch said.

The agency also affirmed the company’s senior secured first-lien revolving credit facility and term loans at CCC with recovery rating of RR1, senior secured first-lien notes at CCC-with recovery rating of RR2, senior secured second-lien notes at C with recovery rating of RR6, senior unsecured notes with subsidiary guarantees at C with recovery rating of RR6 and senior unsecured notes without subsidiary guarantees at C with recovery rating of RR6.

As expected, the filing only includes Caesars Entertainment Operating, the agency said.

Fitch also said it affirmed the ratings within Caesars Entertainment Corp.’s corporate family as the bankruptcy filing does not impact the entire group.

The agency affirmed Caesars Entertainment’s long-term issuer default rating at CC, along with Caesars Entertainment Resort Properties, LLC’s issuer default rating at B-, senior secured first-lien credit facility rating at B+ with recovery rating of RR2, first-lien notes rating at B+ with recovery rating at RR2 and second-lien notes rating at CCC with recovery rating of RR6.

Caesars Growth Properties Holdings, LLC’s issuer default rating also was affirmed at B-, senior secured first-lien credit facility rating at BB- with recovery rating of RR1 and second-lien notes rating at B- with recovery rating of RR4.

Fitch also affirmed Corner Investment PropCo, LLC’s long-term issuer default rating at CCC and senior secured credit facility rating at B- with recovery rating of RR2, along with Chester Downs and Marina LLC’s long-term issuer default rating at CCC and senior secured notes rating at CCC+ with recovery rating of RR3.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.