Trump Entertainment Resorts Holdings L.P. Rating Lowered To ‘D’

NEW YORK, NY--On Dec. 1, 2008, Standard & Poor's Ratings Services lowered its corporate credit rating on Atlantic City-based Trump Entertainment Resorts Holdings L.P. (TER) to 'D' from 'CCC'.

In addition, the issue-level rating on the senior secured notes co-issued by TER and Trump Entertainment Resorts Funding Inc. was lowered to 'D' from 'CCC-'.

(Top left photo, Donald J. Trump and wife Melanie.)

"The rating actions stem from the company's announcement that it will forego making the Dec. 1, 2008 interest payment on its senior secured notes," said Standard & Poor's credit analyst Ben Bubeck.(bottom right photo)

A payment default has not occurred relative to the legal provisions of the notes since there is a 30-day grace period to make the payments.

"However, we consider a default to have occurred when a payment related to an obligation is not made, even if a grace period exists, when the nonpayment is a function of the borrower being under financial stress--unless we are confident that the payment will be made in full during the grace period.

"If the interest payment due under the senior secured notes is not paid during the 30-day grace period, holders of 25% of the outstanding principal amount of the notes would be permitted to accelerate the maturity of the notes. This would result in a cross-default under the company's senior secured term loan (unrated). "

Media Contact:
Mimi Barker, New York (1) 212.438.5054, mimi_barker@standardandpoors.com

Analyst Contacts:
Ben Bubeck, CFA, New York (1) 212-438-2176
Craig Parmelee, CFA, New York (1) 212-438-7850