Moody’s downgrades Wynn Resorts rating

Moody's predicts Wynn's earnings will remain under pre-pandemic levels in 2022.
Moody's predicts Wynn's earnings will remain under pre-pandemic levels in 2022.

Analysts at Moody’s Investors Service have downgraded Wynn Resorts Finance LLC’s corporate family rating from Ba3 to B1 while the outlook of the company remains negative.

Macau.- Moody’s Investor Services has downgraded the corporate family rating of Wynn Resorts Finance LLC from “Ba3” to “B1” and it has downgraded its senior unsecured notes from “B1” to “B2”. Analysts said the company’s outlook remains “negative.”

The rating downgrade reflects Moody’s expectation that the group’s credit structure “will remain weaker than pre-pandemic levels, because of the slow recovery in earnings amid lingering travel restrictions affecting Wynn’s Macau operations” due to the Covid-19 pandemic.

Analysts also predicted Wynn’s consolidated earnings will remain under pre-pandemic levels through 2022 due to a very gradual recovery in Macau’s GGR.

Moody’s stated: “This expectation factors in the likely pattern of travel resumption and temporary suspensions.”

Debt rated “B” is considered speculative and faces high credit risk.

Wynn Macau executive director confirms closure of all VIP rooms

Wynn Macau closed all of its VIP rooms from December 20. Linda Chen, the operator’s executive director told Macao Daily that the company ceased its agreements with third-party VIP gaming promoters companies. Chen noted that the mass market was Wynn’s core business, accounting for 75 per cent of its total gaming performance this year. 

Analysts at Morgan Stanley have recently said that more gaming concessionaires will terminate their agreements with junkets, effectively ending the industry in the city even if the authorities have not formally ordered a ban. 

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