S&P puts Herbst on watch

Standard & Poor's said it placed its ratings on Herbst Gaming Inc., including the B+ corporate credit rating, on CreditWatch with negative implications following somewhat weaker-than-anticipated second-quarter operating performance as a result of ongoing challenges in Herbst's route business, as well as weaker-than-expected performance at its Primm, Nev.-based casinos in the first two months following its acquisition of the properties.

"We had previously stated that while the company's credit measures were weak for the B+ category, we expected that they would trend more in line with the rating during fiscal 2008," S&P credit analyst Guido DeAscanis said in an agency rating. "However, current operating trends suggest that credit measures could remain weak over a more prolonged period of time than we had previously anticipated."

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