Harrah's Casino Brand Moved To High Credit Risk By S&P

It is not only that casino companies in the US are struggling with their stock prices, but they also are falling out of favor with creditors. Harrah's Entertainment received a major blow on Friday in their credit rating.

Standard & Poor's Ratings services on Friday lowered the credit rating for Harrah's. Their old rating was "CCC", and they have now been moved to a "CC' by S&P.

Harrah's offered to exchange debt for $2.8 billion in new notes. That offer was the trigger point for the credit rating to be lowered. It is yet another fallout from the recession that is taking place in the US.

"We view the exchange and tender offers as being tantamount to default given the distressed financial condition of the company and our previously stated concerns around Harrah's ability to service its current capital structure over the next several quarters absent this exchange offer,' said S&P in a statement.

Harrah's is far from alone when it comes to casino companies that are struggling. Trump Entertainment has already filed for bankruptcy, and Station Casinos is on that same path.

Las Vegas Sands has already had to do financial restructuring and Wynn Resorts has seen their stock price fall drastically. Pinnacle Entertainment has already canceled a casino resort project in Atlantic City.

March 7, 2009
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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