S&P cuts Buffalo Thunder

Standard & Poor's said it lowered its ratings on the Buffalo Thunder Development Authority to B- from B.

At the same time, the agency said it placed the ratings on Creditwatch with negative implications.

"The ratings downgrade and Creditwatch listing reflect its concerns relating to the authority's near-term liquidity position given initial operating results, and its expectation that the Buffalo Thunder Resort and Casino (opened Aug. 12) will have a hard time driving sufficient customer traffic to the Resort's tourist-driven, Santa Fe location, because we expect the current weak economic climate to continue through at least the first half of 2009," said S&P credit analyst Ariel Silverberg in a report.

Despite management's plans to realign the current cost structure and focus its marketing efforts more toward regional customers, the agency said it is concerned that the property will be challenged to achieve a sufficient run-rate level of EBITDA to meet its fixed obligations in the next few quarters.

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