S&P: Hard Rock Hotel on watch

Standard & Poor's said it placed its ratings on Hard Rock Hotel Inc., including its B+ corporate credit rating and B senior secured debt rating, on CreditWatch negative.

S&P said the CreditWatch listing follows the company's earnings conference call on May 5, where management indicated that the Hard Rock Hotel might eventually acquire a portion of the major development project to be constructed adjacent to the Hard Rock Hotel & Casino.

Although a substantial portion of this project will likely continue to be owned through a related entity, any meaningful contribution by the company to acquire commercial space may increase debt leverage beyond S&P's previous expectations.

Debt leverage at March 31, was about 5.0x, in line with the current ratings.

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