S&P cuts Trump Entertainment

Standard & Poor's said it lowered Trump Entertainment Resorts Holdings LP's corporate credit rating to B- from B and its 8½% senior secured second-lien notes to CCC+ with a recovery rating of 5 from B with a recovery rating of 4.

The outlook is negative.

The agency said the downgrade reflects its expectation for continued challenges to the company's business position, resulting largely from ongoing competitive pressures from operators in Pennsylvania and New York, and overall economic weakness, which is playing a role in the decline of gaming revenues in the Atlantic City market and most other U.S. gaming markets.

The B- rating reflects Trump Entertainment's small portfolio of casino assets, which rely exclusively on cash generated in the highly competitive Atlantic City market, high debt leverage and limited liquidity, S&P said.

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