S&P cuts Harrah's Entertainment outlook to negative

Standard & Poor's said it revised its rating outlook on Harrah's Entertainment Inc. to negative from stable.

At the same time, S&P said it affirmed its ratings on Harrah's Entertainment and subsidiary Harrah's Operating Co. Inc., including its BBB- long-term and A-3 short-term corporate credit ratings.

The agency said that the outlook revision follows Harrah's announcement of its cash offer to acquire all of the outstanding shares of London Clubs International plc for $530 million in cash.

S&P added that the ratings on Harrah's reflect the company's well-diversified and good-quality portfolio of casino properties, which has been enhanced by the Caesars' assets and its well known brand, the company's larger presence in jurisdictions viewed as having relatively stable regulatory environments, such as Nevada and New Jersey, its experienced management team and the significant level of internally generated cash, which enables the company to pursue its growth opportunities.

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