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Troubled Revel Casino has been downgraded by Moody’s Wednesday.
The newest Atlantic City casino reported the biggest losses in that New Jersey gambling Mecca during its first several months of operation.
On Tuesday, Revel sought assistance from its lenders in an effort to increase the amount of credit it can draw on.
Moody’s Investors Service cited the casino’s poor performance in the cutthroat Atlantic City market as rationale for lowering its credit rating. The move follows similar action last week by Standard & Poor’s.
“Based on these results, Moody’s has increased concern that Revel will not be able to achieve targeted business volumes and earnings necessary to cover its fixed charge burden,” the agency wrote. “And while Revel’s monthly gaming revenue has increased ... it is, in Moody’s opinion, significantly below the rate necessary for Revel to maintain an adequate level of liquidity and support its current debt burden.”
The $2.4 billion casino opened in April, but has been stuck in 8th place out of the city’s 12 casinos in terms of gambling revenue. It is trying to increase its credit commitments from lenders to $100 million in a deal it hopes to complete next week.
Revel posted a $35 million quarterly operating loss.
- Aaron Goldstein, Gambling911.com Business
