S&P downgrades CORE

Standard & Poor’s said it lowered the corporate credit rating on CORE Entertainment Inc. to CCC- from CCC+.

The agency also said it placed the ratings on CreditWatch with negative implications.

S&P also said it lowered the ratings on the company’s $200 million senior secured first-lien term debt due 2017 to CCC- from CCC+.

The 4 recovery rating is unchanged, indicating 30% to 50% expected default recovery.

S&P also said it lowered the rating on the company’s $160 million 13½% second-lien term loan due 2018 to C from CCC-.

The 6 recovery rating is unchanged, indicating 0 to 10% expected default recovery.

The downgrades reflect a view that CORE Entertainment’s debt capitalization is unsustainable and the recovery prospects for the second-lien lenders is negligible, the agency said.

CORE Entertainment has entered the grace period to preserve liquidity, given its cash flow deficits and ongoing investment needs, S&P said.

The company does have liquidity to service its debt with cash balances of about $81 million as of March 31, the agency added.

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