Moody's Investor Service has upgraded Caesars Entertainment Resorts

Apr 27, 2017 10:14 AM

Moody's Investor Service has upgraded Caesars Entertainment Resorts Properties, LLC's Corporate Family Rating to B2, its Probability of Default Rating to B2-PD, its senior secured Term Loan B and revolving credit facility to B1, its senior secured first lien notes to B1, its second lien notes to Caa1. The company's SGL-2 Speculative Grade Liquidity Rating was also affirmed.

Moody’s calls the company’s outlook “stable”.

"The upgrade reflects the solid operating outlook for Las Vegas (73 percent of revenues), stabilizing market conditions in Atlantic City (20 percent of revenues), the company's good liquidity, and our view that returns from recent and ongoing room renovations will contribute to EBITDA growth 2017 and 2018", said Moody's analyst Peggy Holloway.

Moody's also says it has considered the company's pending amendment to lower pricing that, if passed, will result in an approximate 12 percent reduction in cash interest expense on CERP's $2.4 billion Term Loan B thereby improving interest coverage and liquidity.