Moody's lowers American Casino to SGL-3

Moody's Investors Service said it changed the speculative-grade liquidity rating for American Casino & Entertainment Properties, LLC to SGL-3 from SGL-2.

The company's B3 corporate family rating, B3 probability of default rating and B3 senior secured note ratings were affirmed.

The outlook remains negative.

The downgrade reflects the change in the company's cash balance, which is below previous expectations and are not expected to increase, Moody's said.

The ratings reflect the company's small size, high leverage and weak interest coverage, the agency said.

The ratings also recognize the company's revenue concentration in the depressed gaming markets in and around Las Vegas, Moody's said.

The ratings are supported by its adequate liquidity profile and an expectation that the company can generate sufficient earnings to support interest and maintenance capital spending during this challenging operating environment, the agency said.

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