Moody’s downgrades Station Casinos’ probability of default rating
November 26, 2008 - 12:46 pm
Moody's Investors Service today downgraded Station Casinos' probability of default rating from Caa2, or in poor standing, to Ca, or extremely speculative, a day after the gaming company announced it was seeking a private debt exchange.
The casino company's corporate family rating remained at Caa2.
In a note to investors, Moody's analysts wrote that there "is a high probability" Station Casinos will breach its bank covenants if the exchange is not successful, jeopardizing the gaming company's ability to meet its debt burden.
CreditSights, an independent credit analyst firm, said today the "proposed exchanges will not forestall a bankruptcy" without the company seeking credit amendments from its banks.