Moody's cuts Alliance Gaming

Moody's Investors Service said it lowered the ratings of Alliance Gaming Corp. and placed the ratings on review for possible further downgrade.

Ratings downgraded include the $75 million senior secured revolving credit facility due 2008 to B1 from Ba3, the $350 million senior secured term loan due 2009 to B1 from Ba3 and the corporate family rating to B1 from Ba3.

Moody's said the downgrade was in response to the company's announcement it will not be in a position to file its annual report on form 10-K for the fiscal year ended June 30, 2005 by Sept. 13. Although Alliance intends to file for a 15 calendar day extension, the company stated that it may not be able to file the form 10-K by the extended filing date.

The downgrade also takes into consideration that in the course of the annual closing and audit process, several transactions came under review with respect to the timing of revenue recognition. This finding has prompted a broader review of Alliance's sale contracts and revenue recognition practices, the agency said.

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