Moody's says Caesars add-on is positive

Moody's Investors Service said that Caesars Entertainment Corp.'s announcement regarding a proposed add-on of $750 million to its $1.25 billion 8½% senior secured notes due 2020 is considered a credit positive.

The proposed offering, along with Caesars' concurrent announcement that it is plans to amend and extend a portion of its $1,987,000,000 outstanding term loans, will contribute favorably to the company's liquidity profile which Moody's already view as very good, the agency said.

Caesars has an SGL-1 speculative grade liquidity rating.

These proposed actions, however, do not have an impact on Caesars' Caa1 corporate family rating or stable outlook given that they do not solve what we characterize as longer-term capital structure issues related to very high leverage and lack of full interest coverage.

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