Moody's lowers Riviera Holdings

Moody's Investors Service said it downgraded Riviera Holdings Corp.'s ratings and placed the company's ratings on review for further possible downgrade.

Riviera's corporate family rating was downgraded to Caa1 from B3, its series A term loan and revolver to B3 from B2, and its series B term loan to Caa3 from Caa2.

The speculative grade liquidity rating was revised to SGL-3 from SGL-2.

The ratings are on review for further possible downgrade.

Moody's said the downgrade reflects the year over year approximate $2.5 million EBITDA decline at Riviera Las Vegas' property between fiscal fourth quarter 2011 and the prior year, along with the fact that the property reported negative EBITDA of about $8 million for fiscal 2011.

Although the company's Black Hawk Colorado property reported positive EBITDA for fiscal 2011 of $9.7 million, Riviera announced that it had entered into an agreement to sell the Riviera Black Hawk to Monarch Casino & Resort, Inc. for $76 million.

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