Our assessment of the Authority’s business risk profile as weak reflects the company’s narrow business focus as an operator of a single gaming facility, which operates in a competitive market. Our assessment of the Authority’s financial risk profile as highly leveraged reflects its weak liquidity position, high debt leverage, and our expectation that it will have difficulty generating sufficient cash flow to support its current capital structure over the intermediate term.
Standard & Poor’s Ratings Services’ corporate credit rating on El Dorado County, Calif.-based Shingle Springs Tribal Gaming Authority (the Authority) reflects our assessment of the company’s financial risk profile as “highly leveraged” and our assessment of the company’s business risk profile as “weak”, according to our criteria.
