Trump Skips Payment and S&P Rating Slashed

2 December 2008

After Trump Entertainment Resorts Inc. announced on Friday that it would not make the $53.1 million interest payment due on Dec. 1, Standard & Poor's Ratings Services announced on Monday that Trump’s credit rating would be cut, the Associated Press reports.

The Atlantic City-based company said skipping the payment was “part of a strategy to maintain sufficient liquidity.” After missing the payment, Trump Entertainment said it plans to use the 30-day grace period to restructure capital, improve liquidity as well as to grow and diversify the business.

According the news agency, the company’s credit rating and issue-level rating on the senior secured notes fell to “D” level from “CCC.”