Mississippi Choctaw debt rating takes a dive after raid on casino

Monday, August 1, 2011  

The Mississippi Band of Choctaw Indians got some more bad news after the FBI raided its casino on June 12.

Two days later, Moody's Investors Service downgraded the $200 million in securities owed by the Choctaw Resort Development Enterprise from B3 to Caa2. The junk bond rating is one of the lowest possible.

Moody's cited uncertainty surrounding the tribe's leadership. The tribal council recently threw out the results of an election in which Phyliss J. Anderson defeated incumbent Beasley Denson.

Moody's said the tribe could have trouble refinancing its debt. The tribe must pay $71 million on November 4.

Get the Story:
Choctaws' bonds get junk rating (The Jackson Clarion-Ledger 7/31)

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Mississippi Choctaw casino sees small return on big investment (7/25)
Opinion: Raid on Mississippi Choctaw casino tied to non-Indians (7/22)
Editorial: Something just not right with Mississippi Choctaw casino (7/21)
Mississippi Choctaw chief confirms FBI probe tied to gaming firm (7/20)