In This Issue: Hotels And Gaming:Will The Economy Keep Dealing Them Winning Hands?: It is a fact of life as seemingly immutable as death, taxes, and global warming: As the consumer goes, so goes the hotel and gaming business. In recent years, solid economic fundamentals have supported steady growth in both industries, whose fortunes are driven primarily by levels of disposable income, plus consumer and business confidence. Even the Katrina-related deterioration of the U.S. economy in 2005's fourth quarter had only a modest impact on the propensity of people to travel and gamble. Restful Nights For The U.S. Lodging Industry: The choice of business model is among the key considerations for Standard & Poor's when rating a hotel company's debt. Other factors considered include overall economic conditions, lodging industry merger and acquisition trends, what market segment the company primarily competes in, and its geographic diversity. U.S. Gaming Industry Is On Pace For Mid-Single-Digit Revenue Growth In 2006 : The U.S. gaming industry remains on pace to achieve mid-single-digit revenue growth this year, despite consumers facing pressure from higher interest rates and energy costs, and a moderating housing market. The Ever-Changing Las Vegas Strip Is About To Get Another Makeover: This latest planned development is being driven by the market's good operating momentum, solid intermediate-term outlook, its historical track record of achieving greater demand through new property openings, the real estate run-up in Las Vegas, and the favorable view the market continues to command from the capital markets. Macau Versus The Las Vegas Strip: Which Will Be The Bigger Winner?: It is estimated that during the next few years Macau will not only replace the Las Vegas Strip as the largest gaming market in the world in terms of revenue, but it will also propel China into the second largest global gaming jurisdiction, after the U.S. Mississippi Gulf Coast Gaming Will Recover, But Can It Hit The Jackpot?: Among the many victims of Hurricane Katrina's unprecedented damage and destruction along the Mississippi Gulf Coast were the region's dozen riverboat casinos. Now, nearly nine months later, three of them are up and running in temporary facilities. For Casino Stocks, The Game Is Hold 'Em (Or Sell 'Em): For the U.S. gaming industry, Standard & Poor's U.S. Equity Research projects that casino winnings in 2006 will total $50.3 billion. Overall, we have a neutral outlook on the group of seven casino stocks that we cover. Ratings Methodology For Native American Gaming Financings: As expected, the number of Native American gaming financings rated by Standard & Poor's has continued to increase during the past 18 months, and this segment now represents approximately 25% of rated issuers in Standard & Poor's U.S. gaming universe. | 
