S&P also noted the increasing likelihood of a restructuring in the near term for the largest casino owner in the U.S.
Caesars' "capital structure is unsustainable," S&P wrote in a note on Wednesday. "The company is burning cash to fund capital expenditures and interest payments, and we expect the company will need additional liquidity in 2015 to cover interest, capital expenditures, and debt maturities."
Caesars burned $730.5 million in cash in 2013, up from $497.5 million in 2012 and $149.4 million in 2011, according to Bloomberg.
Despite this, the stock rose 7.27% to $19.04 at 11:41 a.m. on Wednesday.
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Separately, TheStreet Ratings team rates CAESARS ENTERTAINMENT CORP as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate CAESARS ENTERTAINMENT CORP (CZR) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: