NEW YORK (AP) -- Standard & Poor's lowered its outlook for Caesars Entertainment Wednesday, citing the casino's weaker-than-expected operating performance. The ratings agency said that Las Vegas in particular has been a disappointment.
S&P said that it had expected Las Vegas would improve this year and build momentum heading into 2013, but it hasn't lived up to those expectations.
Credit analyst Melissa Long said that meager business in Las Vegas is reflective of a softening economic environment in the U.S. Gaming revenue on the Las Vegas Strip fell 6.4 percent in the second quarter, Long said.
S&P maintained the ratings for Caesars Entertainment Corp. and subsidiary Caesars Entertainment Operating Co. Inc. This includes the "B-", or junk, corporate credit rating.
Separately, Moody's Investors Service said that Caesars' proposed $750 million add-on to its $1.25 billion senior secured notes due 2020 will not impact its ratings. The proposed offering and Caesars' plans to amend and extend part of its $1.99 billion outstanding terms loans should help its liquidity position, the ratings agency added.
Moody's said its stable outlook for Caesars is unchanged.
Standard & Poor's Ratings Services gave a "B'' issue-level rating to the proposed senior notes offering and a "2'' recovery rating.
Earlier this month the company reported that its second-quarter loss widened, driven by hefty charges related to land costs in the Chinese territory of Macau, among other expenses. Revenue rose 2 percent.
Shares of Caesars Entertainment added 10 cents to $8.10 in midday trading Wednesday.
