S&P: Inn of the Mountain Gods outlook negative

Standard & Poor's said it revised its outlook on Inn of the Mountain Gods Resort and Casino to negative from stable and affirmed its B corporate credit rating.

The agency said the outlook revision reflects concerns surrounding recent negative operating trends and an expectation that these negative trends will continue over the next few quarters due to the current weak economic environment, resulting in a deterioration of credit measures. At April 30, the adjusted debt-to-EBITDA ratio was 5.8 times, compared with 5.2 times at the same time last year.

The B rating reflects Inn of the Mountain Gods' status as a single-market operator, its small cash flow base and the remoteness of its properties' location, S&P said.

These weaknesses are partially tempered by the limited amount of gaming competition in southern New Mexico, the agency said.

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