S&P drops Trump Entertainment

Standard & Poor's said it lowered its corporate credit rating on Trump Entertainment Resorts Holdings LP to D from CCC.

In addition, the issue-level rating on the senior secured notes co-issued by the company and Trump Entertainment Resorts Funding Inc. was lowered to D from CCC-, the agency said.

"The rating actions stem from the company's announcement that it will forego making the Dec. 1 interest payment on its senior secured notes," said S&P credit analyst Ben Bubeck.

A payment default has not occurred relative to the legal provisions of the notes since there is a 30-day grace period to make the payments; however, the agency said it considers a default to have occurred when a payment related to an obligation is not made, even if a grace period exists, when the nonpayment is a function of the borrower being under financial stress - unless it is confident that the payment will be made in full during the grace period.

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