Moody's affirms River Rock Entertainment

Moody's Investors Service said it affirmed River Rock Entertainment Authority's B2 corporate family rating, B2 senior unsecured note rating and stable outlook.

Moody's said the ratings take into account that debt service is entirely dependent on cash flow generated by a relatively small, single gaming facility and that leverage is not likely to improve materially given River Rock's ability to take on additional debt.

However, the agency said it believes that River Rock will eventually use its additional debt capacity to construct a permanent facility, although its owner has no current plans to construct one at this time. The ratings also consider that River Rock will maximize its ability to pay dividends to owner/operator Dry Creek Rancheria Band of Pomo Indians.

Positive ratings consideration is given to River Rock's good operating performance despite senior management turnover and bridge damage in December 2005 that destroyed the primary route to the casino facility.

Moody's said the stable outlook acknowledges the favorable demographics and limited amount of competition in River Rock's immediate market area.

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