S&P cuts Lago Resort to CCC+

S&P said it lowered its corporate credit rating on Lago Resort & Casino LLC to CCC+ from B- and placed it on CreditWatch with negative implications.

The agency also lowered all issue-level ratings one notch in line with the downgrade and placed them on CreditWatch with negative implications.

“The downgrade and CreditWatch listing reflect our view that there is an increasing likelihood that EBITDA at del Lago Resort & Casino in the first full year of operations may not ramp up to a level that fully covers cash fixed charges (including interest expense, amortization, and modest maintenance capital expenditures) as well as the risk of a near-term covenant default,” S&P said in a news release.

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