S&P foresees challenges for Connecticut tribes

Tuesday, October 14, 2008  

Connecticut tribes, whose gaming revenues have been declining, will continue to see challenges in fiscal year 2009, according to Standard & Poor's.

The Mashantucket Pequot Tribal Nation and the Mohegan Tribe have taken cost-cutting measures in response to the downturn in economy. But the market probably won't improve soon, S&P said in a downgrade of the Mashantucket Tribe's credit rating.

”While we expect that current leverage is fairly close to peak, we anticipate very little improvement in this metric in fiscal 2009, as conditions in the Connecticut market will likely remain challenging,” according to the credit rating service.

The Mashantuckets are laying off 700 people, or about 6 percent of its workforce, Foxwoods Resort Casino and the new MGM Grand at Foxwoods. The Mohegans recently suspended a $734 million expansion at Mohegan Sun

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Mashantuckets' Credit Rating Lowered (The New London Day 10/14)
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