S&P upgrades Telesystem International Wireless

Standard & Poor's upgraded Telesystem International Wireless Inc. including raising its corporate credit rating to B- from CCC+. The outlook is stable.

S&P said the revised rating follows repayment on Aug. 8 of the remaining principal amount of Telesystem International Wireless' senior guaranteed notes due December 2003.

S&P cuts Riviera Holdings

Stand downgraded Riviera Holdings Corp.'s ratings including cutting its $215 million 11% senior secured notes due 2010 to B from B+. The outlook is stable.

S&P said the action is due to a prolonged period of weak credit measures and the expectation that these credit measures will not improve meaningfully in the near term.

This view is supported by the recent announcement of weaker-than-expected second quarter operating results, S&P noted. For the most recent quarter ended June 30, 2003, consolidated EBITDA declined 15.6% on a year-over-year basis due to a decrease in gaming revenues at both the Las Vegas and Black Hawk properties. As a result, debt leverage and EBITDA coverage of interest expense weakened to 6.7x and 1.2x, respectively, at June 30, 2003.

Given operating trends, S&P does not expect credit measures to materially improve over the next several quarters.

Ratings reflect Riviera's high debt leverage and small portfolio of two casinos with the larger being an older property that is located well north along the Las Vegas Strip.

This Las Vegas property, which contributed greater than 65% of property level EBITDA for the first six months of fiscal 2003, experienced a 14.7% year-over-year decline in EBITDA for the second quarter ended June 30, 2003 as a result of decreased gaming volumes and a slightly lower occupancy percentage in April and May, S&P said. Despite its susceptibility to changing Las Vegas market conditions, such as weakness in the economy and the impact from external geopolitical events, S&P does not expect a material decline in the performance of the Las Vegas Riviera to continue over the intermediate term due to the property's niche position, loyal customer base, and close proximity to the Las Vegas Convention Center.

The Riviera Black Hawk, benefits from being the first casino passed on the main access route from Denver, and is across the street from the market-leading casino, Isle of Capri Black Hawk. The company's Black Hawk property continued to be affected by the weak Denver economy and rising benefit costs, with EBITDA decreasing 6.4% on a year-over-year basis for the quarter ended June 30, 2003.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.