Moody's keeps Trump on review

Moody's Investors Service said it maintained the ratings of Trump Entertainment Resorts Holdings, LP's on review for downgrade following the company's announcement that it refinanced its $500 million first-lien rated bank facility with a new $493.25 million first-lien unrated bank facility, $393.25 million of which was funded at closing.

The issuer has B3 corporate family and probability-of-default ratings and Caa1 (LGD4, 65%) rating on its $1.25 billion second lien notes due 2015. All ratings are on review for downgrade.

Proceeds from the bank facility also were used to provide funding for the hotel tower being built at the Trump Taj Mahal Casino Resort.

The decision to keep the company on review considers competition from new gaming supply in New York and Pennsylvania and increased promotional spending within the Atlantic City market, according to the agency.

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