S&P lowers Eldorado Resorts

S&P said it downgraded all its ratings on Eldorado Resorts Inc. by a notch, including the issuer rating to B from B+.

“We believe the company's merger with Caesars Entertainment Corp. will close by the end of this year since Eldorado has committed financing in place, and we believe it will secure the remaining required regulatory approvals over the next few months. Pro forma for the merger and under our assumed recovery scenario, lease-adjusted leverage will be above 8x by the end of 2021, which is above our downgrade threshold for both companies at the prior rating level,” said S&P in a press release.

“The ratings remain on CreditWatch negative, reflecting substantial uncertainty as to the ability to recover later this year and into 2021 following a significant deterioration in cash flow and credit measures this year,” S&P said.

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