Moody's introduces new ratings

Moody's Investors Service has introduced two new ratings: probability-of-default ratings and loss-given-default ratings.

The agency's current long-term credit ratings are opinions about expected credit loss that incorporate both the likelihood of default and the expected loss in the event of default. The loss-given-default rating methodology will disaggregate these two key assessments in long-term ratings.

The agency said this methodology will enhance the consistency in its notching practices across industries and will improve the transparency and accuracy of its ratings, as Moody's research shows that credit losses on bank loans have tended to be lower than those for similarly rated bonds.

Probability-of-default ratings are assigned only to issuers, not specific debt instruments, and use the standard Moody's alpha-numeric scale. They express Moody's opinion of the likelihood that any entity within a corporate family will default on any of its debt obligations.

Loss-given-default assessments (or LGDs) are assigned to individual rated debt issues - loans, bonds and preferred stock - and also express Moody's opinion of expected loss as a percent of principal and accrued interest at the resolution of the default, with assessments ranging from LGD1 (loss anticipated to be 0%-9%) to LGD6 (loss anticipated to be 90%-100%).

Below is a list of the rating actions for Moody's rated companies, sorted by industry. The rating immediately after the company name denotes the corporate family rating and the percentages next to the LGDs represent the expected loss-given-default rates.

Gaming, lodging and leisure

155 East Tropicana, LLC, B3; probability-of-default rating: B3; notes, B3, LGD4, 57%.

Aztar Corp., Ba2; probability-of-default rating: Ba2; notes, Ba3, LGD5, 80%.

Bluegreen Corp., B2; probability-of-default rating: B2; notes, B3, LGD5, 76%.

Boyd Gaming Corp., Ba2; probability-of-default rating: Ba2; revolver and term loan, upgraded to Ba1 from Ba2, LGD2, 28%; notes, upgraded to Ba3 from B1, LGD5, 83%.

CasaBlanca Resorts, B3; probability-of-default rating: B3; senior secured notes, upgraded to B2 from B3, LGD3, 43%; senior subordinated notes, upgraded to Caa2 from Caa3, LGD5, 89%.

CCM Merger Inc., B1; probability-of-default rating: B1; revolver and term loan, upgraded to Ba3 from B1, LGD3, 35%; notes, B3, LGD5, 88%.

Choctaw Resort Development Enterprise, Ba2; probability-of-default rating: Ba2; term loan, Ba2, LGD3, 44%; notes, upgraded to Ba2 from Ba3, LGD4, 57%.

Chukchansi Economic Development Authority, B2; probability-of-default rating: B1; notes, B2, LGD4, 65%.

Cinemark, Inc., B1; probability-of-default rating: B1; discount notes, upgraded to B3 from Caa1, LGD 6, 92%. Cinemark USA, Inc., existing revolver and term loan, Ba2, LGD 2, 27%; new revolver and term loan, upgraded to Ba1 from Ba3, LGD2, 11%; senior subordinated notes, upgraded to B2 from B3, LGD 5, 74%;

Circus and Eldorado JV, B2; probability-of-default rating: B2; mortgage notes, B2, LGD 4, 52%.

Festival Fun Parks, LLC, B2; probability-of-default rating: B2; notes, downgraded to B3 from B2, LGD4, 59%.

French Lick Resorts & Casino LLC, B3; probability-of-default rating: B3; mortgage notes, B3, LGD4, 54%.

Gaylord Entertainment Co., B2; probability-of-default rating: B2; notes, B3, LGD5, 77%.

Golden Nugget, Inc., B2; probability-of-default rating: B2; notes, downgraded to B3 from B2, LGD4, 62%.

Greektown Holdings, LLC, B1; probability-of-default rating: B1; revolver and term loan, upgraded to Ba3 from B1, LGD3, 32%; notes, B3, LGD5, 89%.

Hard Rock Hotel, Inc., B2; probability-of-default rating: B2; notes, upgraded to B2, LGD3, 45%.

Herbst Gaming, Inc., B1; probability-of-default rating: B1; revolver and term loan, upgraded to Ba1 from B1, LGD2, 16%; notes, B3, LGD5, 78%.

Hilton Hotels Corp., Ba2; probability-of-default rating: Ba2; notes and contingently convertible notes, Ba2, LGD4, 53%; minimum leases commitments, term loans and revolver, Ba2, LGD4, 53%; senior unsecured debt shelf, Ba2, LGD4, 53%; subordinated debt shelf, downgraded to B1 from Ba3, LGD6, 97%; preferred stock, B1, LGD6, 97%.

HRP Myrtle Beach Operations, LLC, Caa1; probability-of-default rating: B3; senior secured notes, upgraded to B2 from B3, LGD3, 41%; junior secured notes, Caa2, LGD5, 85%.

Imax Corp., B3; probability-of-default rating: B3; notes, downgraded to Caa1 from B3, LGD4, 58%.

Inn of the Mountain Gods Resort and Casino, B3; probability-of-default rating: B3; notes, B3, LGD4, 54%.

Intrawest Corp., Ba3; probability-of-default rating: Ba3; notes, B1, LGD5, 76%.

Isle of Capri Black Hawk LLC, B1; probability-of-default rating: B2; revolver and term loan, B1, LGD3, 34%; Isle of Capri Casinos, Inc., Ba3; probability-of-default rating: Ba3; revolver and term loan, upgraded to Ba1 from Ba2, LGD2, 18%; notes, upgraded to B1 from B2, LGD5, 76%.

Jacobs Entertainment, Inc., B2; probability-of-default rating: B2; revolver, term loan and delayed draw term loan, upgraded to Ba2 from B1, LGD2, 13%; notes, B3, LGD4, 69%.

Las Vegas Sands Corp., Ba3; probability-of-default rating: Ba3; revolver, term loan and delayed draw term loan, upgraded to Ba2 from Ba3, LGD3, 39%; notes, downgraded to B2 from B1, LGD6, 90%.

Little Traverse Bay Bands of Odawa Indians, B2; probability-of-default rating: B1; notes, B2, LGD4, 66%.

Majestic Holdco, LLC, B2; probability-of-default rating: B2; discount notes, upgraded to Caa1 from Caa2, LGD6, 95%. The Majestic Star Casino, LLC, senior secured notes, upgraded to B1 from B2, LGD3, 33%; senior notes, downgraded to Caa1 from B3, LGD5, 80%.

Marquee Holdings, Inc., B1; probability-of-default rating: B1; discount notes, upgraded to B3 from Caa1, LGD6, 95%. AMC Entertainment, Inc., revolver and term loan, upgraded to Ba1 from Ba3, LGD2, 11%; senior notes, upgraded to Ba3 from B2, LGD3, 35%; senior subordinated notes, B3, LGD5, 81%.

MGM Mirage, Ba2; probability-of-default rating: Ba2; senior notes, Ba2, LGD3, 43%; senior subordinated notes, downgraded to B1 from Ba3, LGD6, 93%.

Mohegan Tribal Gaming Authority, Ba1; probability-of-default rating: Ba1; revolver, upgraded to Baa1 from Ba1, LGD2, 12%; senior notes, upgraded to Baa2 from Ba2, LGD2, 15%; senior subordinated notes, upgraded to Ba2 from Ba3, LGD4, 69%.

MTR Gaming Group, Inc., B1; probability-of-default rating: B1; senior unsecured notes, upgraded to B1 from B2, LGD3, 46%; senior subordinated notes, B3, LGD5, 85%.

Peninsula Gaming, LLC, B2; probability-of-default rating: B2; notes, downgraded to B3 from B2, LGD4, 62%.

Penn National Gaming, Inc., Ba2; probability-of-default rating: Ba2; revolver and term loans, Ba2, LGD3, 6 7/8% senior subordinated notes, downgraded to B1 from Ba3, LGD6, 91%; 6¾% senior subordinated notes, B1, LGD6, 95%.

Pinnacle Entertainment, Inc., B2; probability-of-default rating: B2; revolver, term loan and delayed draw term loan, B1, LGD3, 34%; notes, Caa1, LGD5, 87%.

Pokagon Gaming Authority, B3; probability-of-default rating: B3; notes, B3, LGD3, 46%.

Resorts International Holdings, LLC, Caa1; probability-of-default rating: Caa1; revolver and term loan, upgraded to B3 from Caa1, LGD3, 33%; second-lien term loan, downgraded to Caa3 from Caa2, LGD5, 86%. Resorts International Hotel and Casino, Inc., Caa1; probability-of-default rating: Caa1; first-mortgage notes, Caa1, LGD3, 49%.

River Rock Entertainment Authority, B2; probability-of-default rating: B1; notes, B2, LGD4, 66%.

Riviera Holdings Corp., B2; probability-of-default rating: B2; notes, B2, LGD4, 56%.

Royal Caribbean Cruises Ltd., Ba1; probability-of-default rating: Ba1; notes and convertible notes, Ba1, LGD4, 55%; preferred shelf, upgraded to Ba2 from Ba3, LGD6, 97%.

San Pasqual Casino Development, B2; probability-of-default rating: B1; notes, B2, LGD4, 66%.

Scientific Games Corp., Ba2; probability-of-default rating: Ba2; revolver and term loans, upgraded to Baa3 from Ba2, LGD2, 21%; notes, upgraded to Ba3 from B1, LGD5, 76%.

Seminole Tribe of Florida, Ba1; probability-of-default rating: Ba1; notes, Ba1, LGD4, 64%.

Seneca Gaming Corp., Ba2; probability-of-default rating: Ba1; notes, upgraded to Ba2 from Ba3, LGD4, 66%.

Six Flags, Inc., B3; probability-of-default rating: B3; PIERS mandatorily convertible preferred stock, upgraded to Caa2 from Caa3, LGD6, 98%; notes, upgraded to Caa1 from Caa2, LGD5, 74%. Six Flags Theme Parks Inc., revolvers and term loan, upgraded to Ba3 from B1, LGD2, 16%.

Speedway Motorsports, Inc., Ba1; probability-of-default rating: Ba1; revolver, upgraded to Baa2 from Ba1, LGD2, 20%; notes, Ba2, LGD5, 75%.

Station Casinos, Inc., Ba2; probability-of-default rating: Ba2; senior notes, upgraded to Ba2 from Ba3, LGD3, 48%; senior subordinated notes, upgraded to Ba3 from B1, LGD5, 82%.

Trump Entertainment Resorts Holdings, LP, B3; probability-of-default rating: B3; revolver, term loan and delayed draw term loan, upgraded to Ba3 from B2, LGD1, 9%; notes, Caa1, LGD4, 65%.

Tunica-Biloxi Gaming Authority, B2; probability-of-default rating: B2; notes, B2, LGD4, 53%.

Turning Stone Casino Resort Enterprise, Ba3; probability-of-default rating: Ba2; notes, Ba3, LGD4, 67%.

Universal City Florida Holding Co. I & II, B1; probability-of-default rating: B1; notes, B3, LGD5, 87%. Universal City Development Partners, Ltd., revolver and term loan, upgraded to Ba1 from Ba3, LGD2, 15%; notes, B2, LGD4, 57%.

Vail Resorts, Inc., Ba3; probability-of-default rating: Ba3; notes, upgraded to B1 from B2, LGD5, 75%.

Waterford Gaming LLC, B1; probability-of-default rating: Ba3; notes, B1, LGD4, 65%.

Wheeling Island Gaming, Inc., B2; probability-of-default rating: B2; notes, B3, LGD4, 60%.

Wynn Las Vegas, LLC, B1; probability-of-default rating: B1; first mortgage notes, B1, LGD4, 50%; second mortgage notes, downgraded to B3 from B2, LGD6, 96%.

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