Wynn Resorts assigned 'Ba3' corporate family rating, outlook stable - Moody's |
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Tue, 23 Oct 2007 06:53
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MUMBAI (Thomson Financial) - Moody's Investors Service said it has assigned a 'Ba3' corporate family rating to Wynn Resorts Ltd (Wynn HoldCo), citing the excellent results for its Las Vegas and Macau gaming subsidiaries, improved consolidated financial and liquidity profile, good risk reward profile of planned developments in both gaming markets, and continued favourable reputation as a high-end resort developer and innovator.The outlook is stable and considers that while significant new supply will enter both the Las Vegas and Macau gaming markets over the next several years, both markets will successfully absorb the new supply while continuing to show growth, Moody's said.Moody's assigned a 'Ba3' probability of default rating to the company and a 'B2' rating to its existing 1 bln usd senior unsecured delay draw term loan due 2010.Moody's also upgraded Wynn Las Vegas LLC's 1.3 bln usd first mortgage notes due 2014 to 'Ba2' from 'B1', and withdrew Wynn Las Vegas' 'B1' corporate family rating and 'B1' probability of default rating. The withdrawal reflects a consolidated rating approach to Wynn HoldCo and its Las Vegas and Macau gaming subsidiaries, the ratings agency said.Key credit concerns include the company's concentration in only two gaming markets, large share repurchase authorization, and expectation that Wynn Las Vegas will remain free cash flow negative until Encore is completed. Additionally, despite the excellent performance of the company's Macau gaming subsidiary, the Macau market is still considered a 'High' regulatory risk jurisdiction by Moody's.TFN.newsdesk@thomson.comans/manCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Wynn Resorts corporate credit rating raised to 'BB', outlook stable - S&P 