Brief: S&P trims Hard Rock outlook

The revision reflects weaker-than-expected results for the quarter and year ended last Nov. 30 and expectations that debt-service measures won't support a higher rating in the medium term, S&P said.

Earlier this week, the company reported a fiscal 1998 loss of $3.7 million, including a $3.5 million charge for early retirement of debt, compared with a $17.5 million loss in fiscal 1997, which included a one-time $24.7 million charge for termination of a management contract.

S&P noted the Las Vegas hotel-casino's cash flow slipped to $17.9 million in 1998 from $18.1 million a year earlier due to decreased retail sales and higher marketing costs.

S&P said debt associated with a current expansion of the resort should peak in mid-year 1999. It also said the off-Strip hotel-casino "has been successful and has been able to carve a distinct niche and attract a loyal customer base in the highly competitive Las Vegas market" despite its small size.

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