Moody's lowers Ameristar outlook to stable

Moody's Investors Service said it revised the outlook of Ameristar Casinos, Inc. to stable from positive.

The agency noted that the company's Ba3 corporate family rating, B1 probability of default ratings and Ba3 (LGD-3, 36%) bank loan rating were affirmed.

Moody's said that the outlook revision to stable considers that a moderation in the company's operating performance as well as less favorable economic conditions will make it unlikely that Ameristar will achieve the credit metrics required for higher corporate family rating in next 12 to 24 months.

According to the agency, the Ba3 corporate family rating recognizes that despite Ameristar's high 2007 fiscal year-end leverage at almost 6.0 times, a number of the company's qualitative characteristics are stronger and more representative of a mid-to-low Ba credit.

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