Excessive debt load, declining revenues and market saturation have placed both CT Tribal Casinos (that don't pay their fair share of taxes) in an uneviable situation. When the recession came along, the financial implosion!
Beacon Hill might be wise to consider what the Commonwealth would 'recapture' were they to approve this folly.
Mohegan’s credit rating may be cut
Owners of the Mohegan Sun Hotel and Casino in Connecticut are grappling with a fourth year of declining earnings.
NEW YORK — Mohegan Tribal Gaming Authority, owner of the Mohegan Sun casinos in Connecticut and Pennsylvania, may have its credit rating cut by Moody’s Investors Service as refinancing deadlines approach.
The tribe needs to refinance by March its $675 million revolving loan, from which it has borrowed $527 million, as well as $250 million of 8 percent bonds by April to avoid both debts becoming current, Moody’s said, placing the ratings on review for possible downgrade.
“We remain concerned that without some type of deleveraging event, MTGA may find it difficult to reduce its high leverage in time to refinance outstanding maturities on less-than-onerous terms,’’ Keith Foley, a Moody’s analyst, said in a statement.
The upcoming loans account for about half of Mohegan’s total debt.
The Uncasville, Conn.-based casino operator’s borrowings concerning Moody’s are due to be repaid by March and April 2012, a year after they become current.
The casino group is grappling with its fourth year of declining earnings, while maintaining dividend payments to tribe members that are expected to total $59 million this fiscal year, regulatory filings show.
Foxwoods Resort Casino, 10 miles from Mohegan Sun and owned by the Mashantucket Western Pequot Tribe, has not made debt payments since late 2009 and has gone silent on its negotiations with creditors.
Mohegan said Sept. 15 that its Connecticut resort cut 475 jobs.
Beacon Hill might be wise to consider what the Commonwealth would 'recapture' were they to approve this folly.
Mohegan’s credit rating may be cut
Owners of the Mohegan Sun Hotel and Casino in Connecticut are grappling with a fourth year of declining earnings.
NEW YORK — Mohegan Tribal Gaming Authority, owner of the Mohegan Sun casinos in Connecticut and Pennsylvania, may have its credit rating cut by Moody’s Investors Service as refinancing deadlines approach.
The tribe needs to refinance by March its $675 million revolving loan, from which it has borrowed $527 million, as well as $250 million of 8 percent bonds by April to avoid both debts becoming current, Moody’s said, placing the ratings on review for possible downgrade.
“We remain concerned that without some type of deleveraging event, MTGA may find it difficult to reduce its high leverage in time to refinance outstanding maturities on less-than-onerous terms,’’ Keith Foley, a Moody’s analyst, said in a statement.
The upcoming loans account for about half of Mohegan’s total debt.
The Uncasville, Conn.-based casino operator’s borrowings concerning Moody’s are due to be repaid by March and April 2012, a year after they become current.
The casino group is grappling with its fourth year of declining earnings, while maintaining dividend payments to tribe members that are expected to total $59 million this fiscal year, regulatory filings show.
Foxwoods Resort Casino, 10 miles from Mohegan Sun and owned by the Mashantucket Western Pequot Tribe, has not made debt payments since late 2009 and has gone silent on its negotiations with creditors.
Mohegan said Sept. 15 that its Connecticut resort cut 475 jobs.
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