Wall Street ratings agencies are downgrading their ratings for Revel, saying Atlantic City’s newest casino resort hasn’t lived up to expectations and may have a hard time paying off its debt.
Moody’s Investors Service lowered Revel’s Corporate Family and Probability of Default ratings on Wednesday, citing its poor performance in the cutthroat Atlantic City market.
The move follows similar action last week by Standard & Poor’s, which also cut its rating of Revel’s credit quality.
The $2.4 billion casino opened in April, but has been stuck in 8th place out of the city’s 12 casinos in terms of gambling revenue. It is trying to increase its credit commitments from lenders to $100 million in a deal it hopes to complete next week.
Revel posted a $35 million quarterly operating loss.