Outlook stable, agency says

Moody's Investors Service has upgraded the rating outlook on Poster Financial Group Inc. of Las Vegas to "stable" from "negative" based on the Nevada Gaming Commission's decision to issue a four-year license to Tim Poster and Tom Breitling.

The commission also granted the men the option of applying for a permanent license in January 2005.

The men were recently approved to purchase the Golden Nugget hotel-casinos in Laughlin and downtown Las Vegas from MGM MIRAGE. Their operating company, Poster Financial, recently issued $155 million in bonds to help finance the purchase.

Although the licenses aren't permanent, the four-year license "eliminates the risk of having a gaming license expire and the new owners not getting a permanent license within the next twelve months," Moody's said.

The decision also "alleviates Moody's previous concern regarding the possible trigger of a change of control and/or event of default that may have been caused by the loss of a gaming license in the next 12-month period."

Moody's initially downgraded the rating outlook after the Gaming Control Board, which votes prior to the commission, recommended a one-year license for Poster and Breitling.

The commission decided on a four-year license to help alleviate concerns from ratings agencies. The rating on the debt offering remains unchanged.

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