80°F
weather icon Cloudy
Las Vegas, NV
Casinos & Gaming

Aristocrat Leisure responds to downgrade by ratings agency

November 30, 2010 - 12:00 am
 

Aristocrat Leisure Ltd. on Monday responded to a ratings agency's decision to downgrade the slot machine manufacturer's debt.

The downgrade by Standard & Poor's followed the Sydney-based company's announcement that its annual profit could decline by 57 percent due to weak sales. Aristocrat Leisure also attributed its profit drop to the strength of the Australian dollar.

Standard & Poor's on Friday downgraded Aristocrat's debt to junk, lowering it one level from BBB- to BB+. The company was also placed on CreditWatch negative.

"Whilst Aristocrat is disappointed with this outcome the impact on the company's performance is immaterial," the company said in a Monday statement. "The only consequence of a downgrade will be mildly increased borrowing costs under Aristocrat's existing bank facilities."

Aristocrat Leisure employs about 650 people in Las Vegas through its Aristocrat Gaming unit.

THE LATEST
 
Will Strip resort closures change the hotel market?
By McKenna Ross / RJ

Simple laws of supply and demand might make observers think that losing two resorts within three months would have a significant effect on the Strip market.

 
Why South Point owner bought land near resort for $5.5M
By Sean Hemmersmeier / RJ

South Point owner Michael Gaughan recently purchased 4.3 acres of undeveloped land near the Las Vegas resort, and he plans to get it developed quickly.

 
MGM topples food donation goal, surpassing 5M meals
By Alan Halaly / RJ

MGM Resorts International,has passed its goal of providing 5 million meals to the Las Vegas community and to other cities it operates resorts in well before 2025.