S&P: 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 ratings on the company, including its B corporate credit rating.

S&P said the outlook revision follows weaker-than-expected third quarter financial performance due to its May 2003 opening of the Travel Center casino, which resulted in operating inefficiencies and higher costs associated with operating two casinos, as well as unseasonably warm weather impacting its ski operations.

Adjusted EBITDA during the quarter ended Jan. 31, 2004, declined about 20% year over year, despite a 28% year-over-year increase in gaming revenues. As a result, S&P said it now expects leverage to be meaningfully higher by the end of the company's fiscal 2004 (April 30) than originally anticipated.

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