As usual, we have a week’s worth of ratings agency actions on the debt of LBO-backed companies from Standard & Poor’s and Moody’s Investor Services. This was a ridiculously slow week for PE-backed debt (unless you count the Energy Future Holdings disappointment, which will surely change the company’s ratings next week). This week there was just one downgrade and one withdrawal.
Company: Cannery Casino Resorts, LLC
Sponsor: Oaktree Capital Management
Action: Moody’s downgraded the company’s corporate family and probability of default ratings to Caa1 from B2.
Highlights: “The downgrade reflects the slower than expected ramp up at Cannery’s two new casino facilities — the permanent facility at The Meadows which opened in April 2009 and Eastside Cannery in North Las Vegas which opened in August 2008. As a result, leverage will be significantly higher than expected.”
Company: Panolam Industries International Inc.
Sponsor: Genstar Capital LLC and Sterling Group LP
Action: Moody’s Investors Service withdrew all ratings of Panolam
the issuer entered bankruptcy.
Highlights: Moody’s last rating action for Panolam occurred on July 7 when the company’s Probability of Default was downgraded to D from Ca/LD.