Moody's lowers Riviera loans

Moody's Investors Service said it downgraded Riviera Holdings Corp.'s ratings, including its corporate family rating to Caa3 from Caa2 and its probability of default rating to Caa3-PD from Caa2-PD.

At the same time, Moody's downgraded Riviera's first-lien term loan and revolver to Caa2 from Caa1, second-lien term loan to Ca from Caa3 and speculative grade liquidity rating to SGL-4 from SGL-3.

The outlook is negative.

Moody's said the downgrade reflects its view that Riviera's capital structure is unsustainable given growing operating losses and its inability to cover debt service and capex needs given limited available cash balances. Additionally, although the company continues to pay required interest on time, it remains in technical default of financial covenants, the agency said.

© 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.