Moody's lowers River Rock

Moody's Investors Service said it downgraded River Rock Entertainment Authority's corporate family rating and probability of default rating to Caa2 from Caa1, along with the rating on the $200 million of senior notes due 2011 to Caa2 (LGD 4, 50%) from Caa1 (LGD 4, 50%).

All ratings remain under review for further possible downgrade.

The downgrade reflects continued delays in completing the refinancing of the authority's $200 million senior notes due Nov. 1, 2011, which has heightened the risk of a near-term payment default, Moody's said.

Despite recent resolution on some critical issues that had caused delays in the refinancing process and the authority's relatively stable operating performance, progress has been much slower than anticipated, the agency said.

The review for possible downgrade suggests that the rating could be lowered further if the authority is not able to refinance the notes on a timely basis, Moody's added.

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