Cannery gets another boost from Wall Street

Las Vegas Sun

The Cannery hotel-casino in North Las Vegas.

Las Vegas-based Cannery Casino Resorts LLC has received another boost from Wall Street after successfully refinancing its debt.

Standard & Poor's Ratings Services on Wednesday boosted its corporate credit rating on the company from "B-" to "B" after Cannery closed on $590 million in new senior secured credit deals.

The "B" rating remains in the speculative range, which is common for casino companies.

S&P's rating outlook for Cannery is stable, which S&P said "reflects our expectation that the company will continue to generate levels of cash flow sufficient to support the capital structure and maintain credit measures appropriate for the rating."

While business has been sluggish for Cannery's casinos in Las Vegas and North Las Vegas, according to its financial reports, the company lately has benefited from its casino at the Meadows racetrack in Washington County, Pa.

In the second quarter, Cannery's loss narrowed to $138,000 from $2.77 million a year earlier.

Wednesday's action by S&P followed an announcement by Moody's Investors Service on Sept. 12 that it had shifted its rating outlook on Cannery to positive in part because of the new financing deals.

Moody's at the time said it expects Cannery will generate positive annual free cash flow of $15 million to $20 million on annual net revenue of about $510 million.

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