From the Petoskey News-Review (H/T Junior; also Indianz):
Standard & Poor’s — an independent global provider of credit ratings — has reduced the Little Traverse Bay Bands of Odawa Indians’ credit rating twice in one week.
Following the tribe’s Aug. 11 announcement that it was attempting to re-negotiate the payment of its $122 million in senior unsecured notes — which were originally issued in 2006 to support the construction of the Odawa Casino Resort — and would therefore be suspending its $6.3 million in interest payments due Aug. 17 to its holders; Standard & Poor’s issued a statement Aug. 12, that it would immediately reduce the tribe’s credit rating from ‘CCC’ to ‘CC’ with a negative outlook.
According to Standard & Poor’s credit rating definitions, available on their Web site — www.standardandpoors.com— a ‘CCC’ credit rating means that a company is currently vulnerable, and ‘CC’ means the company is highly vulnerable.
In its Aug. 12 release, Standard & Poor’s also stated that once the tribe missed its interest payment on Monday, Aug. 17, that its credit rating would be reduced to ‘D,’ which means the company has failed to pay one or more of its financial obligations, and that the global credit-rating provider believes the tribe will fail to pay all, or substantially all of its obligations as they come due.