S&P cuts Eldorado Resorts

Standard & Poor's said it lowered its ratings on Eldorado Resorts LLC, including its corporate credit rating to B from B+, the senior secured bank loan rating to B+ from BB- and the senior unsecured rating to B from B+.

The outlook is stable.

The CreditWatch resolution and downgrade follow disappointing operating performance for the quarter ended June 30, 2005 due to the increased competition from Northern California; the absence of a major bowling tournament in 2005; and poor weather conditions in April.

S&P said the ratings on Eldorado reflect its limited cash flow diversity, negative market trends affecting the Reno market during the past few years, particularly given the expansion of Native American gaming in northern California, small cash flow base, and high debt levels.

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