Moody's upgraded the ratings of certain Caesars Entertainment Corp. subsidiaries following the court confirmation of its bankrupt operating unit's reorganization plan.
The rating agency upgraded Caesars Entertainment Resort Properties LLC and Caesars Growth Properties Holdings LLC's ratings, including their corporate family ratings, to B3 from Caa1 and their probability of default ratings to B3-PD from Caa1-PD. Both units were also assigned speculative grade liquidity ratings of SGL-2.
"The Plan confirmation alleviates Moody's concerns that CERP or CGPH could be drawn into the restructuring and the upgrades reflect improving margins and credit metrics over the past two years at each entity," Moody's said in a note.
The outlook for both units is stable, which Moody's said is attributed to positive visitation trends in Las Vegas and the rating agency's stable outlook for the overall gaming industry.
Moody's also upgraded Corner Investment Propco LLC's senior secured bank credit facility rating to B2(LGD3) from B3(LGD3).