S&P: Shingle Springs outlook negative

Standard & Poor's said it revised its outlook on the Shingle Springs Tribal Gaming Authority to negative from stable and affirmed its ratings, including the B issuer credit rating and B $450 million 9 3/8% senior notes due 2015.

The agency said the outlook revision reflects its concern that the Red Hawk Casino, which opened on Dec. 17, will experience a slower-than-expected ramp-up in operating performance due to the currently weakened state of the economy and the resulting pullback in consumer discretionary spending.

The B rating reflects the authority's narrow business focus operating in a single market, well-established competition and some litigation uncertainty, S&P said.

The Red Hawk Casino's good location, with direct access off U.S. Highway 50, and solid demographics in the Sacramento area somewhat temper these factors, in the agency's view.

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