Moody’s: Casinos could face post-flood earnings woes
Published: June 8,2011
MISSISSIPPI RIVER REGION — Moody’s Investors Service said yesterday that small casino operators that have had to close properties along the Mississippi River due to flooding could see their earnings hurt.
The flooding could also further delay the regional market’s recovery, the credit ratings agency said.
The Mississippi River flooding led many casino operators in the area to close casinos there, but most have reopened.
Analyst John Zhao said in a statement that the flooding caused the biggest number of casino closings since Hurricane Katrina in 2005.
“Casino closures for three to six weeks will on average cut around 5 percent to 10 percent of annual revenue, and operating income will also suffer, especially for those casinos that continued to pay employees during the closures,” he said.
The Moody’s report says that small casino operators, like Legends Gaming, are the most vulnerable and bigger companies like Peninsula Gaming and Isle of Capri Casinos Inc. are more insulated. The report says Isle of Capri is helped because of its strong liquidity and because it has casinos in various locations.
Shares of Isle of Capri fell 8 cents to $8.40 in morning trading yesterday.
To sign up for Mississippi Business Daily Updates, click here.
Top Posts & Pages
- Half century of memories — Christmas on Deer Creek to celebrate 50th anniversary
- Analyst: KiOR Columbus plant may end up sold as scrap
- Prison-contract task force working in wake of Epps' indictment
- (UPDATE) Gov. Bryant: $1.2 billion aluminum plant is a very exciting proposition for the state of Mississippi
- Investigators find massive Ag Museum fire was an accident
- Bryant wants free tuition for students with technical diploma
- Prescott leads field for Conerly Trophy as state's best football player
- BILL CRAWFORD: Bryant’s tax cut won’t stop spending growth
- County to ask if it can use unspent hurricane recovery money