Gaming News

New Pittsburgh casino's credit rating downgraded

PITTSBURGH, Pennsylvania -- As reported by the Pittsburgh Post-Gazette: "Less than two months after it opened, the Rivers Casino has become a riskier bet for one prominent New York credit rating agency.

"Standard & Poor's downgraded the credit rating for casino affiliate Holdings Gaming Borrower one notch yesterday, from B to B-minus, citing concerns about the Rivers' 'weak operating performance' and its ability to meet debt service payments if there's no change in fortunes.

"At the same time, the agency put Holdings Gaming on its CreditWatch, with negative implications, meaning there's about a 50 percent chance the rating could be dropped again.

"The moves come as the North Shore casino, which opened with great fanfare Aug. 9, fails to produce revenues anywhere close to its own estimates or even those of the rating agency.

"For the week of Sept. 14-20, the casino suffered its worst seven-day stretch since its opening, generating $3.6 million in gross terminal revenue on $45.1 million in wagers, ranking it seventh among the nine slots venues in the state. It continued a slide that began after a big opening week..."

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