MOODY'S B3 JUNK BONDS

Moody's downgrades casinos' credit ratings


Published on 5/2/2009

Moody's Investors Service lowered its credit ratings Friday for the Mashantucket Pequot Tribal Nation and the Mohegan Tribal Gaming Authority, owners of Foxwoods Resort Casino and Mohegan Sun, respectively.

It cut the Mashantucket Pequots' corporate family and probability-of-default ratings from Ba3 to B1, a low noninvestment or “junk” grade. The tribe's rating outlook is negative.

The Mohegan authority's corporate family and probability-of-default ratings were lowered further, from B2 to B3 “in response to a continuation of weak revenue trends.” The authority's rating outlook also is negative.

Foxwoods “remains exposed to weak gaming demand trends as well as increased competition from video lottery terminal facilities in New York and Rhode Island,” Moody's said.

Moody's also lowered its ratings for Waterford Gaming LLC and Waterford Gaming Finance Corp., whose fortunes are tied to those of Mohegan Sun, which it helped develop and manage.


- Brian Hallenbeck


"Regional"
Gaming A

EDITORIAL FOOTNOTE; Part of what the Day writer wrote is incorrect, however, the fact that Moody's downgraded the MTGA (the Mohegan Tribal Gaming Authority) the Mohegan Tribal Council to B3 IS 100% accurate..

Our (the Mohegan Tribe) credit line has continued to drop because the performance of our casinos and poor business decisions by the MTGA. Our bond rating is JUNK BONDS.

Who is to blame for this? The Mohegan Tribal Council. That's who.

Five members of the Tribal Council are running for re-election, consider the Moody's rating when you vote. Only one of the five based on his voting record should stay, the rest should go. Should they go? What do you think?