Standard & Poor’s ratings, outlook remain unchanged

Monday, Jan. 26, 2004 | 11:03 a.m.

"Given that the owners are both first-time applicants, Standard & Poor's does not believe that the level of caution and scrutiny that the regulators have exercised concerning the owners' affiliations is uncommon," S&P analyst Peggy Hwan said.

"Furthermore, in the event that a permanent license does not get awarded after the four-year period, Standard & Poor's would expect a reasonable approach associated with transferring ownership rather than closure of the casinos," Hwan said. "It is expected that such an approach would have a high likelihood of preserving value for bondholders."

This month, Moody's Investors Service downgraded the credit outlook for Poster Financial debt to "negative" from "stable" after the Nevada Gaming Control Board voted to extend a one-year license to Poster and Breitling to operate the casinos. The agency hasn't revised its outlook since the Nevada Gaming Commission vote Thursday, which extended the license for a four-year term yet allows Poster and Breitling to return after a year to obtain a permanent license.