12.05.08 CASINOS: MotorCity owner rating cut
CCM Merger Inc., which owns the MotorCity Casino in Detroit, had its credit rating lowered by Moody's Investors Service because of its earnings outlook and concerns over meeting loan conditions amid the U.S. recession.
Moody's cut its debt rating and default probability to B3 from B2, with a negative outlook. The change affects about $956 million in debt.
The ratings change comes as the company faces "continued weakness in overall consumer spending and gaming demand trends as well as the additional pressure on the southeastern Michigan economy from the current challenges faced by the three major U.S. automobile manufacturers," Moody's said Thursday in a statement.
CCM Merger Inc., which owns the MotorCity Casino in Detroit, had its credit rating lowered by Moody's Investors Service because of its earnings outlook and concerns over meeting loan conditions amid the U.S. recession.
Moody's cut its debt rating and default probability to B3 from B2, with a negative outlook. The change affects about $956 million in debt.
The ratings change comes as the company faces "continued weakness in overall consumer spending and gaming demand trends as well as the additional pressure on the southeastern Michigan economy from the current challenges faced by the three major U.S. automobile manufacturers," Moody's said Thursday in a statement.
See post at Detroit News
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