Moody’s upgrades Wynn Macau outlook

Moody’s Investors Service has upgraded the Macau casino operator’s outlook to stable.

Macau.- Moody’s Investor Services has upgraded Wynn Macau’s credit outlook from ‘negative’ to ‘stable’. The company’s senior unsecured notes rating has been upgraded from ‘B2’ to ‘B1’.

Wynn Macau is a 72.2-percent owned subsidiary of Wynn Resorts Finance, a wholly-owned subsidiary of Wynn Resorts. It operates the Wynn Palace resort on Cotai.

Wynn Resorts Finance has been affirmed as having a B1 corporate family rating and Ba1 credit rating. Wynn Resorts Finance’s outlook has been changed to ‘stable’.

The ratings agency said the expected recovery in Macau, coupled with the strong performance at the company’s Las Vegas and Encore Boston Harbor properties, will support revenue and EBITDA growth and drive leverage down. 

The ratings agency expects Wynn Resorts to pursue other large, high-profile casino resort development opportunities, such as its development in the United Arab Emirates. 

For the third quarter of the year, Wynn Macau posted operating revenue of US$819.8m, up 6.5 per cent in quarter-on-quarter terms and up 609.2 per cent when compared to last year. The company posted US$254.9m in adjusted property EBITDAR (adjusted earnings before interest, taxation, depreciation, amortisation and rent). It reported a net loss attributable to owners of US$6.2m.