Moody's may cut River Rock

Moody's Investors Service said it placed the ratings of River Rock Entertainment Authority on review for possible downgrade, acknowledging the approaching $200 million senior note debt maturity in November 2011.

The ratings on downgrade review include its corporate family rating of B2, probability of default rating of B2 and $200 million senior notes due November 2011 of B2 (LGD 4, 50%).

Although River Rock's liquidity is expected to remain adequate to finance operations over the next few quarters, it does not have sufficient internal sources of cash to finance the bond maturity, Moody's said.

The refinancing risk could be challenging due to the still relatively unstable financing markets for Native American issuers and their lack of alternative funding sources other than the debt market, the agency added.

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