Moody's gives Hard Rock Park Caa1, notes B3, Caa2

Moody's Investors Service said it assigned a B3 rating to the proposed $155 million senior secured notes and a Caa2 rating to the proposed $100 million junior secured notes of Hard Rock Park Myrtle Beach Operations, LLC (HRP), as well as a Caa1 corporate family rating to HRP.

The outlook is stable.

Moody's said the ratings consider the high financial risk of the start-up project, with no cash flow expected from operations for two years, as well as the modest equity component relative to other rated entertainment development phase projects.

The transaction structure, including an interest reserve account covering the first five cash coupon payments, somewhat mitigates the intermediate term development risk, the agency added.

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