Conn.'s Mohegan Sun downgraded on debt concerns
HARTFORD, Conn.—Moody's Investors Service has downgraded the ratings of the Connecticut-based Mohegan tribal casino operator on debt concerns at a time of slumping consumer spending.
The New York-based ratings agency said Monday the Mohegan Tribal Gaming Authority has not refinanced a $675 million line of credit set to expire in March 2012 and separate debt of $250 million coming due the following month. It also cited weak consumer demand for gambling in the Northeast and the possibility of increased competition if casino gambling is legalized in Massachusetts.
Moody's downgraded the corporate family rating and probability of default rating to Caa3 from Caa2. Moody's also downgraded all long-term debt ratings to a "negative" outlook.
The authority operates the Mohegan Sun in Connecticut and Pocono Downs in Pennsylvania.
A spokeswoman for Connecticut's Mohegan Sun did not immediately return a call seeking comment.
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