Mohegan Tribal Gaming Authority To Undergo Review of Credit

The Mohegan Tribal Gaming Authority has under performed in the first quarter. Several factors could be contributed to the poor numbers. The Authority will now undergo a credit review.

The first quarter numbers of the Mohegan Tribal Gaming Authority have put up enough of a red flag that it is now time for a review of the Authorities credit rating. Moody's Investors Service will be the company conducting the review.

The Mashantucket Pequot Tribe just had their credit rating downgraded a few months ago by a different rating service. If the Mohegans credit is downgraded, it could cause potential money problems for the group.

Slot revenue has been down in the first quarter. The main reason for the decline is the "free play" promotion that the casino has been running. The other reason for the number decline, can be attributed to the economy.

"The economy is definitely showing its impact on gaming. There are a number of gaming markets that are reporting January numbers that are generally exhibiting low single digit declines," said Craig Parlamee, credit analyst from Standard & Poor's rating service.

If the Mohegans have their credit rating reduced, it could become difficult for the group to secure a loan. The loans they would receive would come with high interest rates because of the risk involved.

February 15, 2008
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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