Moody's lowers Trump Entertainment

Moody's Investors Service said it lowered Trump Entertainment Resorts Holdings, LP's probability of default rating to D from Ca.

This rating action reflects the company's recent disclosure that it has not paid the $53.1 million Dec. 1 scheduled interest payment on its 8.5% senior secured second-lien notes due 2015 within the 30-day grace period allowed by the indenture governing the notes, the agency said.

According to the agency, Trump's Ca corporate family rating, Ca senior secured second-lien note rating, and SGL-4 speculative-grade liquidity rating were affirmed.

The outlook is negative.

Moody's said that Trump has obtained a forbearance agreement from the holders of about 70% of the outstanding principal amount of its senior secured second-lien notes pursuant to which the note holders have agreed to forbear from exercising their rights and remedies under the indenture governing the notes until Jan. 21.

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