Wednesday, May 14, 2008

Mashantucket Pequot Credit Rating Lowered

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The Mashantucket Pequot Tribe's credit rating was lowered yesterday by the credit rating agency Moody's Investor's Service on expectations that it will take longer for the tribe to reduce its debt leverage.

No decision has yet been made to the Mohegan's credit rating since Moody's announced in February that the tribe's Mohegan Tribal Gaming Authority was under review for a possible credit downgrade. Last week, however, another credit rating agency, Standard & Poors, lowered MTGA's credit outlook from stable to negative.

Moody's said "lower-than-expected operating results caused by a slowing economy and increased competition in the Northeast United States along with significant construction-related debt, will make it more difficult than previously projected to significantly reduce leverage during fiscal 2008" for the Mashantuckets.