Moody's upgrades Caesars Entertainment

Moody's upgrades debt ratings on Caesars Entertainment, citing better gambling business

Associated Press

NEW YORK (AP) -- Moody's Investors Service upgraded casino operator Caesars Entertainment Corp.'s credit ratings Monday, saying that an improved gambling market could boost the company's results.

Moody's corporate family rating and probability of default rating for Caesars is now "Caa1," up from "Caa2." The company's outlook is "Stable." The upgrade covers about $11.5 billion in debt.

Moody's said it was encouraged by an uptick in the gaming industry. The business has been battered in recent years as cash-strapped consumers cut back on travel and leisure spending.

Caesars Entertainment's liquidity is "very good" in part because it amended some of its debt terms, pushing back the due date from 2015 to 2018, Moody's said. An initial public offering earlier this year of the company's shares also gives Caesars Entertainment more flexibility, Moody's said.

Moody's also upgraded a Caesars subsidiary, called Caesars Entertainment Operating Company Inc. It raised the rating on the subsidiary's senior secured guaranteed revolving credit facility to "B2" from "B3" and its senior secured guaranteed term loans to "B2" from "B3."

Moody's also boosted Caesars' speculative grade liquidity rating to "SGL-1" from "SGL-2."

Shares of Caesars Entertainment rose 40 cents, or 3 percent, to close at $12.90.

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