S&P cuts 155 East Tropicana

Standard & Poor's said it lowered 155 East Tropicana LLC to CCC- from CCC+ and removed ratings from CreditWatch, where they were placed with developing implications on Jan. 22, 2007.

The outlook is negative.

S&P said the downgrade reflects heightened concerns about the company's near-term liquidity position and its ability to meet near-term debt obligations and capital spending needs following the June 9 announcement that the planned sale of the company was terminated.

The CCC- rating reflects 155 East Tropicana's tight near-term liquidity position, its narrow business position as an operator of a single casino, its disadvantaged off-strip location, the highly competitive market environment and challenging economic conditions, the agency noted.

As of March 31, the issuer's total debt-to-EBITDA ratio was 23.9 times.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.