The Cowlitz Tribal Gaming Authority has begun site work on a 5 million casino-resort on the tribe’s 152-acre reservation outside La Center, Washington, with a groundbreaking set for early next year. However, Moody’s Investor Service recently assigned a B3 Corporate Family Rating to the casino financing. According to Moody’s, “Obligations rated B are considered speculative and are subject to high credit risk.” But Chairman Bill Iyall said securing the investment ratings for financing “is just part of the process.” The B3 rating means “We know we’re at a little bit of a disadvantage but that’s where it’s at. We’re feeling comfortable with the project and with the ratings,” Iyall said.
Moody’s said the B3 rating is typical for new casino construction. In this case it, Moody’s noted, it indicates “the ramp-up risk and single asset profile of the Cowlitz tribe” as well as “risks common to Native American gaming issuers, including the uncertainty as to enforceability of lender’s claims in bankruptcy or liquidation.” Moody’s said it will raise its credit rating to B2 if the casino meets anticipated profit margins after it is fully operational—or it could lower the rating if the project has significant cost overruns or construction delays.
The project includes a 130,000 square foot casino, 250-room hotel, convention and entertainment facilities, 200-vehicle RV park, retail, restaurants and tribal facilities. It would be the closest casino to the Portland metro area and one of only two within 100 miles, but several casinos are located within 150 miles from Portland.
Cowlitz Tribal Gaming Authority has entered into a development agreement and management agreement with Salishan-Mohegan LLC, a subsidiary of the Mohegan Tribal Gaming Authority.
The federal government officially recognized the Cowlitz Indian Tribe in 2000. In 2010, 152 acres of land was taken into federal trust for a new Cowlitz reservation. Tribal officials recently said in 2000, Donald Trump offered to develop a resort for the tribe, but his partnership proposal was rejected because it included additional fees for developing and managing the tribal casino under the Trumps name.
