Moody’s downgrades Spectacle Gary

Moody’s Investors Service said it downgraded Spectacle Gary Holdings, LLC’s corporate family and senior secured credit facility ratings to Caa1 from B3. The outlook is negative.

“The downgrade to a Caa1 CFR considers that Spectacle is still in the development process of Hard Rock Northern Indiana and that the coronavirus outbreak could cause delays and have significant negative implications related to constructing the project on time and its ability to ramp up and cover its fixed charges,” said the agency in a press release.

Hard Rock Northern Indiana, a $252 million casino project, will feature a 72,000 square-foot full-service casino with 1,650 slots, 80 tables and a 2,000 seat Hard Rock Live! entertainment venue.

“The downgrade also reflects the negative effect on consumer income and wealth stemming from job losses and asset price declines, which will diminish discretionary resources to spend at casinos, including the Hark Rock Northern Indiana casino, once the facility is open and the crisis subsides,” Moody’s said.

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