Moody’s says rating upgrade possible

Thursday, June 15, 2000 | 10:48 a.m.

Moody's Investors Service placed Santa Fe Hotel Inc. of Las Vegas under review for possible credit ratings upgrade, following that company's decision to sell the Santa Fe hotel-casino to Station Casinos Inc. for $205 million in cash.

Ratings under review for possible upgrade are the "Caa2" rating on $99 million in mortgage notes, the company's "Caa2" senior implied rating and its "Caa3" senior unsecured rating. Santa Fe Hotel is a subsidiary of Santa Fe Gaming Corp.

Moody's said any ratings upgrade will depend on the company's use of cash proceeds from the sale, and will depend on the sale's successful completion. Station said it will attempt to close the acquisition by the fourth quarter of this year.

archive