NagaCorp revenue to reach 40% of pre-pandemic levels in 2021

Moody’s Investor Service Inc has reported that a full recovery will not come until 2022 due to multiple closures in 2020 and 2021.

Cambodia.- Moody’s has reported that it expects NagaCorp to recover by 2022 as long as the company resumes operations in the second half of 2021.

It said NagaCorp’s revenue could reach 40 per cent of pre-pandemic levels if NagaWorld reopens in the next few months. 

NagaCorp has announced plans to reduce pay and lay off employees to improve cost efficiency, and has listed US$200m 7.95 per cent senior notes, which will not be convertible into shares.

According to Moody’s, the notes will provide NagaCorp “sufficient liquidity” to support its cash needs “over the next 18 to 24 months”. 

The group will use the funds to strengthen the group’s working capital as well as for general corporate purposes.

Analysts gave NagaCorp a B1 outlook, which means an obligor can meet its financial commitments but that adverse business, financial, or economic conditions will likely impair the obligor’s capacity or willingness to meet its financial commitments.

Moody’s could downgrade NagaCorp’s ratings if the operating environment deteriorates, resulting in protracted weakness in operating cash flow or if the company has insufficient cash to cover cash burn and short-term debt obligations.

NagaWorld remains closed and it is unknown whether it will be able to open on June 16. The casino suspended operations in March after 11 staff members tested positive for Covid-19.