Moody’s reviews Penn National, Pinnacle

Moody's Investors Service said it placed the ratings of Penn National Gaming, Inc. and Pinnacle Entertainment, Inc. on review for downgrade in response to the Dec. 18 announcement that Penn will acquire Pinnacle in a cash and stock transaction valued at about $2.8 billion.

"Despite the inherent benefits of the combined entities large size, geographic diversification, and real estate investment trust structure, Moody's has concerns that the leverage of the combined entity will remain above what we would consider appropriate for a Ba3 corporate family rating," Moody’s senior vice president Keith Foley said in a news release.

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