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Moody's Upgrades Golden Nugget Investors

LAS VEGAS -- Moody's Investors Service has upgraded the rating outlook on Poster Financial Group Inc. of Las Vegas to "stable" from "negative" based on the Nevada Gaming Commission's decision to issue a four-year license to Tim Poster and Tom Breitling.

The commission also granted the men the option of applying for a permanent license in January 2005.

The men were recently approved to purchase the Golden Nugget hotel-casinos in Laughlin and downtown Las Vegas from MGM MIRAGE. Their operating company, Poster Financial, recently issued $155 million in bonds to help finance the purchase.

Although the licenses aren't permanent, the four-year license "eliminates the risk of having a gaming license expire and the new owners not getting a permanent license within the next twelve months," Moody's said.

The decision also "alleviates Moody's previous concern regarding the possible trigger of a change of control and/or event of default that may have been caused by the loss of a gaming license in the next 12-month period."

Moody's initially downgraded the rating outlook after the Gaming Control Board, which votes prior to the commission, recommended a one-year license for Poster and Breitling.

The commission decided on a four-year license to help alleviate concerns from ratings agencies. The rating on the debt offering remains unchanged.

Copyright © Las Vegas Sun. Inc. Republished with permission.

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