S&P Cuts Caesars’ Grade to CCC- as Cash Burn Raises Default Odds

Standard & Poor’s downgraded Caesars Entertainment Corp.’s credit rating by two steps to CCC-, saying a restructuring is “increasingly likely over the near term.”

“Caesars’ capital structure is unsustainable,” S&P credit analysts Melissa Long and Stephen Pagano wrote in a note today. “The company is burning cash to fund capital expenditures and interest payments, and we expect the company will need additional liquidity in 2015 to cover interest, capital expenditures, and debt maturities.”