S&P: Trump Entertainment on developing watch

Standard & Poor's said it placed its ratings for Trump Entertainment Resorts Holdings LP, including the B corporate credit rating, on CreditWatch with developing implications.

The CreditWatch listing follows the announcement by Trump Entertainment that it has engaged Merrill Lynch to assist the company in the identification and evaluation of strategic alternatives, including, but not limited to, capital structure, financing and value-creation options, the agency said.

An example of a transaction that might have a positive impact would be an acquisition by a higher rated entity, the agency noted, stating that an example of a transaction that could have a negative impact might include a decision to increase debt levels to pursue an acquisition or a recapitalization.

In resolving its CreditWatch listing, S&P said it will continue to monitor developments associated with Trump Entertainment's pursuit of value-creation alternatives.

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