Trump Entertainment Receives Moody's Lowest Rank on Liquidity
By Gabrielle Coppola
"Jan. 23 (Bloomberg) -- Trump Entertainment Resorts Inc., founded by real-estate developer Donald Trump, and Mexican restaurant chain El Pollo Loco Holdings Inc. are among 13 junk- rated companies that had their liquidity rank downgraded in December, according to Moody's Investors Service. As of Dec. 31, 39 issuers carried the "SGL-4'' or "weak'' rating, compared with 22 in June, the New York-based ratings company said. That liquidity ranking is Moody's lowest for high- yield, high-risk companies, indicating they have limited funds to last through the next 12 months.
"Liquidity rating changes demonstrate the speed with which investor risk aversion has translated into tougher times for speculative-grade borrowers,'' Moody's senior analyst John Puchalla in New York wrote in a report today. Poor liquidity levels often go hand in hand with lower long- term debt ratings. The downgrades, concentrated among restaurants, gaming, telecommunications and homebuilding and construction companies, are symptomatic of "tighter credit markets,'' the report said.
Moody's downgraded the Atlantic City, New Jersey-based Trump Entertainment one level to SGL-4 from SGL-3 because of "the likelihood that the company will have to amend its bank credit facility to remain in compliance with its convenants,'' the report said. The casino company, which has $1.75 billion in rated debt, in December received a $500 million mortgage loan from Beal Bank Nevada. Trump Entertainment posted losses in three of the past four quarters before obtaining the mortgage. Moody's rates Trump Entertainment's debt B3, three levels below investment grade, and is considering a downgrade, the report said."
Oh noooo..... does this mean no more of those superb quality "THE APPRENTICE" shows??
Now the US markets are really doomed.....