Moody's upgrades Cowlitz

Moody's Investors Service said it upgraded Cowlitz Tribal Gaming Authority's ratings in response to the company's continued strong performance since opening in April 2017.

The upgrades also consider an expectation that this strong performance will continue, Moody's said.

Cowlitz's corporate family rating also was upgraded to B2 from B3, probability of default rating to B2-PD from B3-PD and senior secured revolver and term loan to B2 from B3.

The outlook is stable.

Since opening, Cowlitz has managed to achieve a debt-to-EBITDA ratio of 4.5x, which is the leverage trigger required for an upgrade, Moody's said.

The company also managed to generate positive free cash flow after all debt service, capital expenditures and cash distributions to the Cowlitz Tribe of about $40 million, the agency said.

The stable outlook anticipates some further earnings improvement and debt reduction, along with significant free cash flow going forward, Moody's said.

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