Friday, March 21, 2008

Credit Rating Agency Downgrades R.I.'s Twin River Slot Parlor Due To Bankruptcy Risk

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Standard & Poor's (S&P) downgraded UTGR's credit rating, citing its risk of bankruptcy. UTGR is owned in large part by the former business partners of the Mohegan Sun and is the entity that operates the Twin River slots parlor in Rhode Island.

The operators of Twin River have been negotiating with lawmakers in the state of Rhode Island to add table games and to remain open 24 hours. According to S & P:

"Standard & Poor's Ratings Services lowered its ratings on UTGR Inc.; the corporate credit rating was lowered to CCC-. The ratings remain on Credit Watch, where they were placed March 4 with negative implications."

"The downgrade reflects our ongoing concerns about a potential bankruptcy filing as the company reportedly continues to negotiate a forbearance agreement with its lenders. While we believe that incentives exist for the company and its lenders to reach an extended agreement, the new ratings better reflect the near-term risk factors for a potential bankruptcy filing if the parties are not able to come to an agreement."

S&P Credit Research Report: