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Outlook improves for Venetian

Friday, July 21, 2000 | 10:50 a.m.

Moody's Investors Service upgraded its outlook from stable to positive for the debt ratings of Las Vegas Sands Inc. and its co-issuer and subsidiary, Venetian Casino Resort L.L.C.

Moody's cited the "Venetian's significant improvement in operating results, the company's better financial flexibility resulting from its stronger operating results and from amending its credit facility thereby deferring amortization and based on our expectations that the company is taking measures that will limit its exposure to outstanding litigation."

Moody's confirmed its Caa1 rating on the Venetian's $425 million of 12.25 percent mortgage notes, the Caa3 rating on $97.5 million of 10 percent senior subordinated notes and its B2 rating on a $190 million secured bank facility. It assigned a B2 rating to the company's $50 million term B secured bank facility.

Negative factors affecting the ratings are the Las Vegas Strip firm's lack of property diversification, its high debt levels, its high proportion of table win -- which is more volatile than slot machine revenues -- and the fact it has significant debt payments coming due in 2001 and has high interest costs.

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