S&P: Riviera on watch

Standard & Poor's said it placed its B corporate credit rating and BB- secured debt rating for Riviera Holdings Corp. on Creditwatch with negative implications.

The Creditwatch listing reflects ongoing operating challenges in the Las Vegas and Black Hawk, Colo. gaming markets, and its expectation that these challenging conditions will persist through at least the first half of 2009 as consumers continue to pull back on discretionary spending in a challenging economic environment, the agency noted.

On June 20, the agency said it revised its outlook on Riviera to negative, citing that the combination of challenging operating conditions in the company's markets, coupled with heightened capital spending, could result in debt leverage rising to the mid- to high-6x area by the end of 2008.

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