S&P may lower River Rock

Standard & Poor's said it placed River Rock Entertainment Authority's B+ corporate credit rating on CreditWatch with negative implications.

The watch follows the authority's tender offer for $30 million of its 9¾% senior notes, as well as its term loan of up to $25 million and planned issuance of $125.8 million in tax-exempt financing, according to the agency.

The authority's pro forma total debt-to-EBITDA ratio is expected to rise to about 6 times.

S&P said that while it always anticipated a spike in leverage as the authority pursues expansion, it now appears that leverage will remain heightened over a much longer timeframe and that the spike in leverage will be higher than anticipated.

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