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Caesars Entertainment Corp.
Standard & Poors, May 2011
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
Abstract
Well-diversified portfolio of casino properties; Established and effective customer loyalty program; and Experienced management. Highly leveraged balance sheet; Limited ability to generate positive free cash flow; Volatility of cash flows given reliance on consumer discretionary spending; and Capital intensity inherent in the gaming industry. The 'B-' corporate credit rating reflects Caesars Entertainment Corp.'s (Caesars') very weak credit measures and Standard & Poor's Ratings Services' belief that prospects for a meaningful rebound in net revenues and EBITDA in 2011 do not seem promising given the current economic outlook. While several actions taken by management have positioned the company with a moderate covenant cushion and very limited debt maturities over the next few years, Caesars' capacity to continue to fund operational and...
Companies mentioned in this report are: Caesars Entertainment Corp.,Caesars Entertainment Operating Co. Inc.,Caesars Entertainment Inc.
Action: Review
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