Moody’s may cut debt ratings

Friday, Jan. 21, 2000 | 11:10 a.m.

Moody's Investors Service said Thursday it has placed Mirage Resorts Inc.'s debt on review for a possible downgrade.

The action, which affects about $2 billion of Mirage's long- and short-term debt, reflects "the likelihood that debt levels will reduce more slowly than anticipated due to lower cash flow from several existing properties, recent share repurchase activity and the expectation that the company will undertake new debt-financed capital projects," Moody's said.

The rating service said it will study Mirage's "competitive position within the consolidating gaming industry and the timetable for improvement in cash flow at all properties and, in particular, at Beau Rivage in Biloxi, Miss."

Mirage is scheduled to report its fourth-quarter earnings Monday, and equity analysts expect the numbers will reflect a strong performance, especially over the New Year's weekend.

archive