Credit agency: Twin River bankruptcy probable

A major credit rating agency cited a "high probability" that the owners of the Twin River greyhound track and slot parlor will seek bankruptcy protection in downgrading the company.

Moody's Investors Service on Monday downgraded Twin River's credit rating just a few days after Standard & Poor's did the same, noting the company had missed a Sept. 2 interest payment on $145 million in loans to its second-lien lenders.

Twin River is owned and operated by UTGR, a subsidiary of a holding company comprising Kerzner International Ltd., Starwood Capital Group and Waterford Group LLC.

The owners have not disclosed how much remains on their loans, but Moody's said the downgrade affects $565 million in debt.

"The Moody's report was not unexpected," said Twin River spokeswoman Patti Doyle. "It certainly doesn't change our intention to continue the dialogue with lenders, vendors and the state over the coming months."

Doyle said Twin River is still making money and that gambling revenues are 12 percent ahead of last year.

Twin River gives the state 61 cents out of every dollar it gets in gambling revenue. Doyle said those payments have not been affected by the company's financial status.

The state is expecting $254 million tax revenue from Twin River this year.

"The problem with Twin River is they borrowed too much money," Gov. Don Carcieri said. "They're going to have to work that out with their lenders."

Twin River is one of two state-licensed slot parlors in Rhode Island. Newport Grand is the other.