The Mashantucket Pequot Tribe says it will likely default on a key loan interest payment. The tribe has again pledged that its financial woes will not affect the operation of its Foxwoods casino. WNPR’s Harriet Jones reports.
The Mashantucket Pequot tribe says it has paid about two thirds of a 21 million dollar bond repayment debt, but it will not make the deadline to pay the balance next month. In the wake of that announcement, Standard & Poor’s credit rating agency has lowered its rating on the tribe, citing the anticipated default.
Senior analyst at Standard & Poor’s Craig Parmelee:
"There have been quite a large number of gaming companies who have failed to make payments when due over the course of the last 18 months, so Foxwoods is not on its own here. But, that said, when the capital markets observe a default, certainly that will have some implications in terms of the cost of capital and availability of that capital in the future."
The tribe has stressed once again that it does not expect its efforts at restructuring debt to affect the operation of its casinos, Foxwoods and the MGM Grand at Foxwoods. The Mashantuckets announced last month they had entered into a forbearance agreement with senior lenders that extends through January 20th.