Moody's may downgrade Eldorado Resorts

Moody's Investors Service said it placed Eldorado Resorts, Inc.'s ratings on review for downgrade in response to news that the company entered into a merger agreement with Caesars Entertainment Corp. for total consideration of $17.3 billion.

The transaction is expected to close in the first half of 2020 subject to customary closing conditions, including approval by gaming regulators, Moody's said.

The outlook was changed to rating under review from stable.

There is no change to Eldorado's SGL-1 speculative grade liquidity rating at this time, the agency said.

The review for downgrade will be revolved after a more comprehensive and detailed understanding of this merger is known with respect to the legal, economic, operations and strategic implications of the transaction on Eldorado, Moody's said.

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