S&P: Riviera outlook negative

Standard & Poor's said it revised its outlook on Riviera Holdings Corp. to negative from developing. Ratings on Riviera, including the B corporate credit rating, were affirmed.

The agency said the outlook revision reflects continuing softness in the Las Vegas and Black Hawk, Colo., gaming markets through the first quarter of 2008 and S&P's expectation that these trends will continue during the next few quarters as consumer spending is negatively affected by the weak economy. In addition, Riviera is in the midst of a heightened capital spending program aimed at renovations.

The B rating reflects Riviera's high debt leverage, its small portfolio of two casinos, the highly competitive markets in which it operates and the relatively newer and higher-quality resorts of many of its competitors, S&P said.

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