| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers C > Headlines for Chester Downs and Marina LLC > News item |
S&P cuts Caesars Entertainment, subsidiaries
Standard & Poor's said it lowered its corporate credit ratings on Caesars Entertainment Corp. and wholly owned subsidiaries, Caesars Entertainment Operating Co. Inc. and Caesars Entertainment Resort Properties, LLC, as well as the indirectly majority-owned Chester Downs and Marina LLC, to CCC- from CCC+.
All ratings were removed from CreditWatch, where they were placed with negative implications on March 5.
The outlook is negative.
The agency revised the recovery rating on Caesars Entertainment Operating's first-lien debt to 3 (50% to 70% recovery expectation) from 2 (70% to 90% recovery expectation) and lowered the issue-level ratings to CCC-, in accordance with notching criteria.
The revised recovery rating reflects reduced recovery prospects for first-lien lenders due to the reduction in enterprise value attributable to the anticipated sale of assets to Caesars Growth Partners, which S&P believes will not be fully offset by debt repayment even assuming all proceeds are used for debt reduction.
S&P also lowered all remaining issue-level ratings on Caesars Entertainment Operating's, Caesars Entertainment Resort's, and Chester Downs' debt by two notches, in accordance with the notching criteria. The recovery ratings on these debt issues remain unchanged, and all issue-level ratings were removed from CreditWatch negative.
The downgrade reflects the agency's expectation that Caesars' capital structure is unsustainable, and the amount of cash the company will burn in 2014 and 2015 creates conditions under which it believes a restructuring of some form is increasingly likely over the near term absent an unanticipated significantly favorable change in operating performance.
© 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.