S&P lifts Downstream Development Authority

S&P said it raised its issuer credit rating on Downstream Development Authority to CCC from SD (selective default) “to reflect our belief that DDA's liquidity will remain less than adequate, despite the reduction in its liquidity uses this year due to the term loan modification, because of the effects of the coronavirus pandemic and a potentially weak recovery following the recent re-opening of its casino.”

At the same time, S&P said it affirmed its CCC issue-level rating on DDA's senior notes and removed the rating from CreditWatch, where the agency placed it with negative implications on March 20.

“The CCC rating reflects DDA's reliance on favorable market conditions to generate sufficient cash flow to meet its near-term debt obligations following its reopening,” S&P said in the release.

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