For more than one year now, Moody's Investor Services has continued to assign a negative credit rating outlook for Marian Ilitch's CCM Merger Inc. which owns and operates MotorCity Casino in Detroit, Michigan. At the same time, Moody's has assigned a stable ratings outlook for Detroit's Greektown Casino.
Marian Ilitch became the sole owner of MotorCity Casino following the acquisition of majority interests from Mandalay Resort Group/MGM Mirage in April 2005 and a year later Moody's downgraded CCM Merger's credit outlook from stable to negative.
At this time, Moody's Investors Service has confirmed CCM Merger Inc.'s ("CCM Merger") B1 corporate family rating, B1 senior secured bank loan rating and B3 senior unsecured note rating. These ratings suggest any investment in CCM Merger, Inc. is considered speculative and carries high risk.
Further, Moody's continues to assign a B1 "Probability of Default" rating for MotorCity Casino's parent company CCM Merger Inc..
Moody's Probability of Default rating suggests that any investment in CCM Merger Inc. should be considered speculative and is subject to high default risk. In some cases, such as the $300 million in junk bonds CCM Merger sold in July 2005 to finance Marian Ilitch's acquisition of 100% interest in MotorCity Casino, Moody's suggests investors should be prepared to lose up to 88% of their initial investments should CCM Merger default.
CCM Merger, Inc. is controlled by IH Gaming, Inc. the surviving entity of the Ilitch merger/acquisition of Circus Circus Michigan and it is presumed that IH Gaming, Inc. is an affiliate of Ilitch Holdings, Inc. the parent of all companies owned by Mike Ilitch and his wife Marian.
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