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More Casino Operators Could be Upgrade

NEW YORK – As reported by Reuters: " More U.S. casino operators could earn investment-grade ratings in coming years as consolidation creates larger companies and as cash flows become more stable, Standard & Poor's said on Tuesday.

"'Consolidation has really created companies of significant size and scale,' said S&P analyst Craig Parmelee. 'They have larger portfolios of gaming assets and they're better able to internally fund capital projects as a result of their scale.'

"Most casino companies have typically carried below investment-grade ratings because of the large amount of debt taken on for casino construction and the majority of casinos will likely stay in the speculative rating categories, Parmelee said.

"…But long-term trends look positive for the industry, he said. The retirement of baby boomers with discretionary spending will contribute to a continued rise in leisure activities, while regulatory limitations will keep the growth of new casinos in check, he said…"

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