S&P lowers Caesars Entertainment

Standard & Poor's said it lowered its corporate credit ratings on Caesars Entertainment Corp. and wholly owned subsidiary Caesars Entertainment Operating Co. to CCC+ from B-.

The outlook is negative.

S&P also lowered the issue-level ratings on the company's debt by one notch, in accordance with its notching criteria, because the recovery ratings remain unchanged.

At the same time, the agency lowered its corporate credit ratings on indirect wholly owned subsidiaries Caesars Linq LLC, Caesars Octavius LLC and Corner Investment Propco LLC to CCC+ from B- and the issue-level ratings on the companies' debt to B- from B.

The outlook on each corporate credit rating is negative.

"The downgrade reflects weaker-than-expected operating performance in the first quarter, and our view that Caesars' capital structure may be unsustainable over the next two years based on our EBITDA forecast for the company," S&P credit analyst Melissa Long said in a news release.

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