S&P keeps Hard Rock Hotel on negative watch

Standard & Poor's said Hard Rock Hotel Inc.'s B+ corporate credit rating and B senior secured debt rating remain on CreditWatch with developing implications following the company's announcement that its owner, Peter Morton, has agreed to sell the Hard Rock Hotel & Casino in Las Vegas to Morgans Hotel Group Co. for $770 million.

In resolving its CreditWatch listing, S&P said it will monitor the situation as it develops. Should the company's outstanding bonds be fully redeemed, the agency would withdraw the ratings. Should some or all of the notes remain outstanding under a more highly leveraged capital structure, ratings could be lowered.

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