S&P trims Peninsula Pacific Entertainment

S&P said it lowered all ratings on Peninsula Pacific Entertainment LLC, including the issuer credit rating, to CCC+ from B.

At the same time, S&P removed all of its ratings on the company from CreditWatch, where S&P placed them with negative implications on March 20.

The outlook is negative.

“We believe Virginia-based gaming operator Peninsula Pacific Entertainment LLC's liquidity may be pressured this year given the temporary closure of the company's operations due to the Covid-19 pandemic,” S&P said in a news release.

“Furthermore, once operations resume it may be challenging in the next year for the company to ramp EBITDA to a level that comfortably covers fixed charges since our economists forecast a recession in the U.S. in 2020 and we believe casinos will reopen with social distancing measures in place.”

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