Moody's: Tribal gaming not immune to economic woes

"And while four of the 19 'Native American Gaming Issuers' that are rated by Moody's have received negative rating actions since the beginning of the year, which includes both the Mashantucket Pequot Tribe and the Mohegan Tribal Gaming Authority, the report concluded that many of the tribal enterprises have the ability to weather the economic downturn.

"...The report comes two days before the state's tribally owned casinos, Foxwoods Resort Casino and Mohegan Sun, are scheduled to release their July slot-machine revenue figures. The numbers are expected to be down, possibly dramatically, as both casinos reported exceptionally strong numbers in July 2007, just before the economy and slots revenues began to slide.

"...And that's why Moody's downgraded both the Mashantucket Pequot Tribe and the Mohegan Tribal Gaming Authority by one notch, specifically citing the economy and 'competitive challenges.'

"...Ultimately, the report concluded, the combination of competition and the flagging economy could put 'immediate downward pressures on returns,' which could result in further downgrades, but those Native American gaming operators rated by Moody's should eventually bounce back because of 'the degree of cushion provided by the reasonably sound financial profiles.'"