P2E receives upgrade in its corporate rating from both S&P Global and Moody’s

Rating Action: S&P Global; Peninsula Pacific Entertainment LLC Upgraded To 'B' On Improved Metrics; Outlook Positive
Oct 25, 2021

We believe P2E's EBITDA will support adjusted leverage in the mid- to high-4x area, on average, through 2022. Based on publicly available data from the New York, Iowa, and Virginia state gaming and racing commissions, we believe P2E generated sufficient revenue in the third quarter 2021 to support a quarterly run-rate level of EBITDA around $50 million, based on an assumed margin in the low- to mid-30% range, similar to the second quarter 2021. We are forecasting P2E's quarterly EBITDA could remain at that level through 2022 since we expect incremental cash flow from P2E's newly opened and expanded Virginia properties in 2021 and 2022, and the benefit of a

Rating Action: Moody's upgrades Peninsula Pacific Ent's CFR to B3; stable outlook
Oct 29, 2021

New York, October 29, 2021 -- .New York, <Rating Date Pending> -- Moody's Investors Service ("Moody's") today upgraded Peninsula Pacific Entertainment LLC's ("P2E") Corporate Family Rating ("CFR") to B3 from Caa1, and its Probability of Default Rating ("PDR") to B3-PD from Caa1-PD. The company's $850 million senior unsecured notes were also upgraded to B3 from Caa1. P2E's $75 million revolver is not rated. The rating outlook is stable.