Moody's downgrades Caesars rating

Associated Press

NEW YORK (AP) -- Moody's Investors Service on Friday downgraded its ratings on Caesars Entertainment Corp. due to negative gambling trends.

The rating agency dropped the casino operator's corporate family rating one notch deeper into junk-grade status, to "Caa2" from "Caa1". The outlook is negative, suggesting that Moody's may downgrade it again in the near future.

Gaming revenue has declined in most of its major markets this year, Moody's said. It expects Caesars will burn through about $300 million of its cash on hand during 2013.

Caesars reported in February that its loss more than doubled in 2012 to $1.5 billion, while revenue grew less than 1 percent to $8.59 billion.

Shares of Caesars, which is based in Las Vegas, fell 5 cents to close at $14.85. Its stock had climbed since last November, peaking at $18.37 in March. They have declined since then.