Moody's Investors Service expressed a cautious view of the U.S. casino market Wednesday, warning that weak gaming revenues and downward consumer trends could place several companies, including Caesars Entertainment Corp. and CityCenter Holdings, "at great risk."
Officials from the companies didn't dispute Moody's assessment that the U.S. gaming market has stalled but rejected notions the businesses are in trouble.
"Our debt is old news," Caesars Entertainment Senior Vice President Jan Jones said of the company's nearly $20 billion in long-term debt, an industry high. "It's the same debt we've had for the last five years, and we don't have any maturities coming due any time soon. The disappointment about the report is that Moody's is correct, the market is sluggish right now."
Moody's said consumer confidence has weakened, payroll expansion has slowed, and retail sales have softened, slowing the improvements in U.S. gaming revenues.
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