Moody's cuts Chukchansi

Moody's Investors Service said it downgraded Chukchansi Economic Development Authority's corporate family rating and senior unsecured notes rating to Caa2 from B3. The agency also lowered the probability of default rating to Caa1 from B2.

The outlook remains negative.

Moody's said the action is prompted by its expectation that the authority will face significant challenges in refinancing its senior notes that will mature in November 2012 and 2013, particularly in light of its high leverage and limited near-term prospects for improvement in business conditions and operating performance.

If difficult credit market conditions persist, the agency said, there is also a heightened risk that interest costs could increase materially from currently low levels, which would significantly dampen the authority's free cash flow generation.

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