Please do not leave this page until complete. This can take a few moments.
A major debt-rating agency downgraded its outlook on the Mashantucket Pequot tribe's outstanding bond debt following a major decline in gaming and entertainment profits at Foxwoods Resort Casino during the COVID-19 pandemic.
The debt rating downgrade by S&P Global Ratings comes as the Mashantucket tribe extended the maturity of its short-term loan from June 30 to Dec. 31, the Wall Street agency said.
Analysts from S&P said the extension resulted in the agency lowering its issue-level rating on the term loan to 'D' from 'CCC.'
The agency added that it expects to raise the issue-level rating on the loan to 'CCC' in the coming days to reflect the ongoing risk of a conventional default. Its credit rating on the tribe will remain 'SD,' or selective default, due to its inability to make full and timely debt service payments to its junior debtholders.
“We view the maturity extension as tantamount to a default because investors are receiving less than the original promise without adequate offsetting compensation," S&P said in a release Tuesday.
In mid-March, Foxwoods and nearby Mohegan Sun casino were forced to shut down temporarily to limit the spread of the novel coronavirus.
The casinos said they spent millions of dollars on new personal protective equipment to safeguard employees and guests, and partially reopened on June 1 despite objections from Gov. Ned Lamont.
During their first month of operation amid the pandemic, Foxwoods said it posted June slot revenues of nearly $33.6 million, a year-over-year decrease of 4.9%.
The amount slot bettors wagered in June, known as the "handle," was $377.1 million, also down 13.5% from $436.1 million in June 2019.
This special edition informs and connects businesses with nonprofit organizations that are aligned with what they care about. Each nonprofit profile provides a crisp snapshot of the organization’s mission, goals, area of service, giving and volunteer opportunities and board leadership.
Learn moreHartford Business Journal provides the top coverage of news, trends, data, politics and personalities of the area’s business community. Get the news and information you need from the award-winning writers at HBJ. Don’t miss out - subscribe today.
SubscribeDelivering Vital Marketplace Content and Context to Senior Decision Makers Throughout Greater Hartford and the State ... All Year Long!
Read HereThis special edition informs and connects businesses with nonprofit organizations that are aligned with what they care about. Each nonprofit profile provides a crisp snapshot of the organization’s mission, goals, area of service, giving and volunteer opportunities and board leadership.
Hartford Business Journal provides the top coverage of news, trends, data, politics and personalities of the area’s business community. Get the news and information you need from the award-winning writers at HBJ. Don’t miss out - subscribe today.
Delivering Vital Marketplace Content and Context to Senior Decision Makers Throughout Greater Hartford and the State ... All Year Long!
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
In order to use this feature, we need some information from you. You can also login or register for a free account.
By clicking submit you are agreeing to our cookie usage and Privacy Policy
Already have an account? Login
Already have an account? Login
Want to create an account? Register
This website uses cookies to ensure you get the best experience on our website. Our privacy policy
To ensure the best experience on our website, articles cannot be read without allowing cookies. Please allow cookies to continue reading. Our privacy policy
0 Comments