Don Barden apparently is cashing in his Las Vegas casino to bolster the financing for his North Shore slots parlor.

Standard & Poor's Ratings Services said yesterday it was expecting the "near-term sale" of Mr. Barden's Fitzgeralds casino to provide the cash for a proposed restructuring of $650 million in loans from Credit Suisse to complete the financing of his Pittsburgh gambling house.

In response to the restructuring plan, S&P upgraded its credit rating on the Pittsburgh casino to B from B minus, saying it was more comfortable with the ability of the slot machine parlor to meet its debt service payments in the first year, even without a quick start.

Another New York agency, Moody's Investors Service, said that its B3 credit rating and stable outlook for PITG Gaming HoldCo, set up as part of the casino's financing, has not changed despite a "favorable view" of the restructuring.

The S&P upgrade came after Mr. Barden increased a completion guarantee to $35 million, from $25 million, to support the Pittsburgh casino's construction. That agreement is backed in full by Barden Nevada Gaming LLC, which owns Fitzgeralds in Las Vegas.

In addition to increasing the amount, Mr. Barden also has agreed that the $35 million, if not used in the construction, will go to help make debt service payments in the first year of the casino's operation, according to S&P.

Before the restructuring, only $10 million of the $25 million was earmarked for that purpose. Now the entire $35 million is pledged toward meeting debt payments.

Ben Bubeck, an S&P credit analyst, said the $35 million essentially serves as an equity investment in the casino by Mr. Barden. The lack of such a contribution, coupled with the high borrowing, had been among the chief concerns S&P and Moody's had raised about the project, leading to low credit ratings from both.

S&P feared that without a fast start, the casino would not be able to meet its debt service obligations in the startup. The $35 million now "makes us pretty comfortable with the first year of operation. We think the liquidity reserve can bridge any gap there is," Mr. Bubeck said.

The sale of the Fitzgeralds casino had been rumored for months but repeatedly denied by officials affiliated with Mr. Barden and his companies.

While Mr. Barden, technically speaking, may not have to sell the casino to provide the $35 million needed in the restructuring, Mr. Bubeck said he did not see any other way for him to come up with the cash. Mr. Barden's other casinos in Indiana, Mississippi and Colorado are deep in debt, and he is borrowing heavily to finance the Pittsburgh slots parlor.

Mr. Bubeck did not see a sale as an act of desperation but as a sign of financial realities given the current credit crunch.

"I wouldn't call it desperate. I would call it the bankers pushing him to put some blood into the game," he said.

He added, "It's the lenders pushing back and getting this deal to look like more of a normal deal. Clearly they pushed back pretty hard to have him contribute this because it was not something he wanted to do in the first place."

Bob Oltmanns, a spokesman for Mr. Barden, declined comment "beyond what S&P already has put in their release."

Mr. Barden bought the downtown Las Vegas casino and two others in Colorado and Mississippi for $149 million from the Fitzgeralds firm in 2001.

Mr. Bubeck said he expects the Las Vegas sale to generate at least $35 million and most likely more. He said Mr. Barden already has "reached out to a couple of potential buyers."

"That's our impression, that they've started the process," he said.

Despite the upgrade, S&P maintained its negative outlook for the casino, mainly because of concerns about its ability to meet about $80 million in annual debt service payments after the first year.

Mr. Bubeck said the agency wanted to monitor the casino's performance before deciding whether to make any change in the outlook.

PITG Gaming has estimated that the Pittsburgh casino will generate at least $450 million a year at full operation, with 55 percent of that going to Pennsylvania for taxes.

Moody's, in giving the casino a low rating but stable outlook last week, said it expected the slots parlor to be a success. It said yesterday its rating and outlook "continue to reflect the debt-financed and startup nature of the Majestic Star casino Pittsburgh, the company's high annual interest burden, and the existing competition within the proposed casino's primary market area."

Doug Harbach, a spokesman for the Pennsylvania Gaming Control Board, said Mr. Barden has not filed anything with the agency to reflect the latest change in the financing.

The gaming board will hold a hearing next week on the $650 million in Credit Suisse financing and another $150 million in funding from a syndicate of banks Mr. Barden has arranged for the $770 million project, including construction costs, fees, contingencies and insurance.

It also will consider his requests to delay completion of a casino ballroom and outdoor amphitheater to the second and third years of operation, respectively, as well as to extend a $3 million commitment to the Hill District from three years to five years.

Given the improved S&P rating and the potential cash from the sale of the Las Vegas casino, state Sen. Jim Ferlo, D-Highland Park, said he saw no reason that Mr. Barden should need to delay the completion of the ballroom or amphitheater.

"If the picture's improving, it's all the more reason that the board shouldn't set aside the obligations he incurred with the license being granted," he said.