S&P cuts Tropicana

Standard & Poor's said it lowered the corporate credit ratings to CCC- from CCC on Tropicana Entertainment LLC and its unrestricted subsidiary, Tropicana Las Vegas Resort & Casino LLC.

Ratings remain on CreditWatch, which was revised to negative from developing.

The downgrade reflects an increased likelihood of accelerated obligations under the indenture governing $960 million in senior subordinated notes in the near term, the agency said.

Following a ruling in late February by the Delaware Chancery Court the issuer is in default. Tropicana also has a one-year forbearance agreement with lenders, effective Dec. 12, and is selling some properties to repay debt under the credit facility, as required by the forbearance agreement, S&P said.

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