Thursday, January 8, 2009

Major Credit Rating Agency Reports Negative Casino Outlook For 2009

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Moody's Investors Service said this week that its outlook for the gaming industry in 2009 is negative due to "ongoing weakness in demand (that) will hurt profitability, liquidity and cash flow. Demand is down across domestic gaming markets and there is no sign of a rebound."

According to the Moody's report, casino operators have been pressured as consumers continue to tighten discretionary spending due to the ongoing housing slowdown, diminishing credit, escalating food costs and unemployment concerns.

Moody's said that its outlook on the industry will be affected by the length of the recession and how well companies handle short-term liquidity concerns and manage operating expenses.