US$350m project<\/a><\/em><\/strong> will be developed in 75 hectares just 500 metres south of the outer restricted zone of Angkor Wat in Siem Reap, where the company has obtained a 50-year lease from the Cambodian government.<\/p>\n\n\n\nThe credit agency said: \u201cThe company\u2019s capital spending plans will reduce its liquidity buffer, while the coronavirus pandemic has weakened the economic environment and made the pace of recovery uncertain for the gaming industry.\u201d<\/p>\n\n\n\n
The agency took into account that the operator is already committed to other major projects, including the phase 3 expansion of NagaWorld, which will be funded by its chief executive, Chen Lip Keong.<\/p>\n\n\n\n
The other is a US$300m casino and hotel complex in far eastern Russia scheduled to open in 2022.<\/p>\n\n\n\n
The non-gaming facilities at Siem Reap, provisionally named Angkor Lake of Wonder, are being designed by two architectural firms, US-based Steelman Partners and Gensler.<\/p>\n\n\n\n
The project may include three hotels, a Naga Water World park, an indoor digital theme park, a non-motorised boating canal system, MICE facilities, and a \u201cChina Town\u201d food street.<\/p>\n\n\n\n
Moody\u2019s stated: \u201cThe company has capacity for additional debt to fund its capital spending plans because of its low leverage.\u201d The agency is also expecting a \u201crecovery in operating conditions and repayment of the company\u2019s senior unsecured notes due May 2021.\u201d<\/p>\n\n\n\n
According to the note, in the third quarter of 2020, NagaCorp reported gaming revenue of US$238 million, down 43 per cent year-on-year but a sequential improvement.<\/p>\n\n\n\n
Moody\u2019s observed: \u201cWe also expect that NagaCorp will generate sufficient cash flows over the next five years to meet its capital spending plans of around US$4 billion without relying on debt. However, NagaCorp\u2019s stated dividend payout ratio of 60 per cent, if paid, will pressure the company\u2019s liquidity.\u201d<\/p>\n\n\n\n
Moody\u2019s has already rated NagaCorp with a B1 negative rating and a negative outlook since April.<\/p>\n","protected":false},"excerpt":{"rendered":"
The company recently announced a new US$350mnon-gaming resort to be built in Angkor Wat, Siem Reap.<\/p>\n","protected":false},"author":2,"featured_media":11961,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Moody's has issued a \"credit negative\" assessment for NagaCorp's proposed US$350 million non-gaming resort near Angkor Wat, Cambodia, citing reduced liquidity buffers amidst other major capital commitments and an uncertain gaming industry recovery. Despite low leverage, the agency notes that significant capital spending and a high dividend payout ratio could pressure liquidity, while still expecting sufficient cash flows over five years to meet US$4 billion in capital plans.","focusai_entities":"NagaCorp, Moody's, Chen Lip Keong, Steelman Partners, Gensler","focusai_location":"Cambodia, Siem Reap, Russia","focusai_target_profile":"ceo_executive (0.9), operator_casino (0.8), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"NagaCorp Liquidity Impact?","query":"How will NagaCorp's stated 60% dividend payout ratio, combined with the US$350M Angkor Wat project and NagaWorld Phase 3 expansion, specifically impact its liquidity buffer and debt capacity in the near-to-medium term, as assessed by Moody's?"},{"label":"Non-Gaming Diversification ROI?","query":"What is the projected return on investment (ROI) and strategic rationale for NagaCorp's significant capital allocation towards non-gaming verticals like Angkor Lake of Wonder, particularly given the 'credit negative' assessment and ongoing gaming market uncertainties?"}],"footnotes":""},"categories":[28,16333],"tags":[30,2336],"class_list":["post-11959","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casino-news","category-south-east-asia-news","tag-cambodia","tag-nagacorp"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/11959","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=11959"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/11959\/revisions"}],"predecessor-version":[{"id":11966,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/11959\/revisions\/11966"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/11961"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=11959"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=11959"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=11959"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}