Moody's changes Hard Rock outlook to developing

Moody's Investors Service said it affirmed Hard Rock Hotel Inc.'s B2 corporate family rating and changed the outlook to developing. The rating action was prompted by an announcement that the company has received and will review proposals to acquire its hotel and casino in Las Vegas.

The developing outlook incorporates uncertainty as to the likelihood, timing and potential impact on creditors of a potential sale, the agency said. The acquisition of the Hard Rock by a higher-rated entity could have positive rating implications and conversely, acquisitions by a more-leveraged entity could have negative rating implications.

Hard Rock Hotel's revenues for the last 12 months ended Sept. 30 were roughly $170 million and debt to EBITDA for the same period was about 4.5x, Moody's said.

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