Moody's: Galaxy still on downgrade review

Moody's Investors Service said the B1 corporate family rating and B1 senior unsecured debt rating for Galaxy Casino SA will remain on review for possible downgrade.

Moody's said it initiated the review in December after parent company Galaxy Entertainment Group Ltd. announced the issuance of $240 million in convertible notes, which are zero-coupon and zero-yield.

The review will continue to focus on how the proceeds of the notes will be streamed down to the company, with reference to the terms of the existing bonds, Moody's said. It will continue to look at Galaxy's business plan, particularly alterations to construction and development commitments at its larger Cotai Mega resort in Macau, as well as its full-year results for 2006, the agency added.

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