Lights out for Harrahs, Moody’s report

According to a recent report by Moody’s implies that Harrahs might be out of business in the near future. Although the report never stated this they do state the amount of debt the new management have racked up and instead of trying to pay off debts they try to spend their way out of it. It sounds like any gambling trying to recover their losses by betting more.

Harrahs was bought for the tune of $27 billion a few years ago by Apollo Management and TPG Capital. The report by Moody’s also says they don’t believe revenues will increase for Harrahs especially in this crisis and that their best means of reducing debt is first to sell assets. Their second option would be to take the company public and raise capital which makes more sense.

They say the house always wins but maybe this isn’t the case if you are a gambler.