Business & Tech
Rohnert Park Casino Tribe Seeks $800 Million
Press Democrat says bonds have higher rate of default but also higher likelihood of yield.
$800 million.
That’s how much money the Federated Indians of Graton Rancheria want to build their casino-resort on Wildfred Avenue, according to a story in the Santa Rosa Press Democrat. The tribe’s request has prompted Standard & Poors to give the tribes bonds a higher-risk credit rating.
According to the Press Democrat, the tribe's bonds were given a “B” rating in the Standard & Poor’s report this week. The rating means the bonds have a higher potential of yield but a greater risk of default.
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Standard & Poor's credit analyst Michael Halchak told the Press Democrat the rating is common for casino projects.
“There really hasn't been a transaction of this size, with this development risk, for some time, so it's hard to say what the market's going to be like,” Michael Paladino, a senior gaming analyst with Fitch Ratings in New York, told the Press Democrat.
