S&P upgrades SkyCity to “credit stable”

SkyCity is now operating fully without Covid-19 restrictions in New Zealand and expects to return to normal levels by fiscal year 2022.

New Zealand.- Standard & Poors has upgraded SkyCity Entertainment Group from negative to “credit stable”.

The credit rating agency predicts SkyCity’s earnings for fiscal year 2020, which ends on June 30, will reach at least 75 per cent of fiscal 2019 levels.

The company reported that revenue for the six months to December 31 was down 76 per cent year-on-year to NZ$78.4m (US$56.4m). However, its Adelaide venue saw a 15.8 per cent increase in revenue from the prior year at AU$89.5m (US$67.0m).

Analysts expect the casino operator will return to pre-Covid 19 levels by 2022.

According to S&P, SkyCity is quickly recovering from the Covid-19 pandemic thanks to a strong recovery in gaming and non-gaming revenue, especially at its Auckland and Adelaide venues.

SkyCity Auckland reopened its doors and began to operate without Covid-19 restrictions in March.

See also: SkyCity halts dealings with junket operators.