New York, March 31, 2008 -- Moody's Investors Service lowered the ratings of CCM Merger, Inc. ("CCM") due to the much slower-than-anticipated leverage reductions and fiercely competitive Detroit gaming market. A stable ratings outlook was assigned.
CCM Merger's debt/EBITDA for the fiscal year-ended December 31, 2007 was about 7.6 times. CCM Merger, Inc. is a holding company whose primary operating subsidiary is Detroit Entertainment, LLC doing business as MotorCity Casino.
CCM Merger's corporate family rating reflects the company's high leverage, highly concentrated operations in the fiercely competitive Detroit gaming market, average development profile, and adequate liquidity.
CCM Merger's profitability metrics are weak and largely reflect the company's ongoing construction and expansion.
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