Fitch Ratings Service affirmed its view of Boyd Gaming Corp., but downgraded the company’s Borgata in Atlantic City in light of impact on the market from Hurricane Sandy and increased competition.
Boyd owns 50 percent of the Borgata and operates the hotel-casino. MGM Resorts International owns the other half of the property, but has placed the holdings in trust as it moves to sell its stake.
Fitch said increased competition from the Revel in Atlantic City, which opened in May, and competition from casinos in New York, Pennsylvania, Delaware and Maryland could slice into Borgata’s market share.
The downgrade also took into account the five-day closure of the Borgata from Hurricane Sandy. Fitch said the impact from storm was uncertain.
The ratings service it still had an overall healthy view of Boyd Gaming and was supportive of the company’s planned $1.45 billion buyout of Peninsula Gaming, which is expected to close next month.
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