Moody’s ups credit outlook for Mohegan Sun on improved debt
HARTFORD — Moody’s Investors Service has raised the credit outlook for the parent company of the Mohegan Sun casino in Connecticut, citing its ability to extend debt repayment until 2019 and putting it in a stronger position to face competition in Massachusetts.
The ratings agency on Wednesday raised the Mohegan Tribal Gaming Authority’s outlook to stable from negative.
Analyst Keith Foley said by extending about $827 million in debt to 2019 from 2018, the company can continue cutting debt before MGM Resorts International opens an $800 million casino complex in Springfield, Massachusetts.
He says the company will generate enough cash to repay loans before their due date.
Several Indian-run casinos have worked to refinance debt for expansion plans after being caught short at the start of the recession in December 2007.