A credit rating agency whacked casino operator Mashantucket Pequot Tribe with a negative outlook rating after lowering its issuer credit rating for a term loan to “D” earlier this month.
S&P Global Ratings said it considered Mashantucket’s decision to extend the maturity of a $275 million loan from Feb. 16, 2025 to June 30, 2028 as “tantamount to a default.”
The rating agency said, in an Aug. 7 announcement, that it believes lenders will receive less than they were originally promised without sufficient offsetting compensation.
On Aug. 15, S&P reiterated concerns about the tribe’s debt, but restored the downgraded loan’s previous rating of “CCC.”
