Fitch downgrades Universal Entertainment
The credit outlook has been downgraded to Negative.
The Philippines.- Credit ratings agency Fitch has revised the outlook for Universal Entertainment Corp from Stable to Negative. It cited financial pressures and a lack of recovery momentum at its flagship Philippine property, Okada Manila.
The downgrade follows a series of weak financial results casting doubt over the ability to rebound in the near term. Universal Entertainment, which owns and operates Okada Manila through its subsidiary Tiger Resort, Leisure and Entertainment, has seen slow casino visitation, stagnating VIP and mass-market performance and intensifying competition.
In 2024, Okada Manila generated gross gaming revenue (GGR) of PHP34.82bn (US$609m), a 21.8 per cent decline year-on-year. Adjusted EBITDA fell by nearly 38 per cent to PHP7.64bn. The negative trend continued into 2025, with GGR for the first half of the year down 15.4 per cent.
Fitch’s analysis cites “no clear trajectory for a near-term recovery” in the integrated resort (IR) segment. While Universal has managed to refinance US$800m in maturing debt and faces no significant refinancing needs until 2029, Fitch warned that any future acquisition strategies funded by debt or reserves could place additional pressure on its financial health.
S&P Global Ratings had flagged similar concerns in June, noting that a turnaround “remains elusive.”
