The ratings agency has decided to maintain Crown Resorts under its Rating Watch Negative (RWN) as the company is still facing two Royal Commissions.<\/p>\n\n\n\n\n\n\n\n
Australia.-\u00a0Fitch Ratings<\/strong>\u00a0has confirmed that\u00a0Crown Resorts will remain on its Rating Watch Negative (RWN)<\/strong> due to the uncertain impact of regulatory inquiries. The ratings agency says it will resolve the RWN once the outcomes of regulatory actions are known\u00a0<\/strong>and it can assess the impact on Crown’s operations and financial profile.<\/p>\n\n\n\n Fitch Ratings<\/a>\u00a0placed Crown Resorts \u2018BBB\u2019 Long-Term Issuer Default Rating (IDR) and senior unsecured rating on RWN last November due to the increased regulatory risks the company was facing. <\/p>\n\n\n\n Crown Resorts is currently facing Royal Commissions in Western Australia and Victoria <\/strong>to determine whether it is suitable to hold its gaming licences. The final reports are expected in October 2021 and March 2022, respectively.\u00a0<\/p>\n\n\n\n KPMG<\/a>, Crown Resorts\u2019 auditor<\/strong>, has recently warned that multiple investigations and the impact of the Covid-19 pandemic have created significant uncertainties over whether the Australian casino operator can continue to operate. <\/p>\n\n\n\n Since the company faced money-laundering allegations<\/a> in 2019, it has been involved in legal disputes and is currently facing two Royal Commissions. Crown has also said that the Australian Transaction Reporting and Analysis Centre (Austrac)<\/a> is \u201cvery likely\u201d to bring a civil lawsuit against its casinos in two cities, which could lead to hefty fines.<\/p>\n\n\n\n According to the Strait Times, the auditors\u2019 report said Crown bonds were in danger of being reimbursed<\/strong> if its credit score falls beneath speculation grade. <\/p>\n\n\n\n Crown Resorts has made reforms<\/strong>, but Adrian Finanzio<\/a>, counsel assisting the inquiry, has told Victoria\u2019s Royal Commission that Crown Melbourne should lose its casino licence <\/strong>due to serious misconduct.<\/p>\n\n\n\n Steven McCann, Crown Resorts CEO,<\/strong> has said that the company could lease its casinos.<\/p>\n\n\n\n According to The Sydney Morning Herald, McCann said: \u201cClearly we have to anticipate a range of scenarios<\/strong> and be flexible enough to respond to the scenarios that are presented.\u201d<\/p>\n\n\n\n McCann said: \u201cWe will consider all options to maximise shareholder value in the context of however the regulatory environment plays out.\u00a0Crown has three of the best integrated resorts in the world<\/strong>. I\u2019m sure there will be people looking with interest at how things play out.\u201d<\/p>\n\n\n\nCrown Resorts to lease casinos if it loses its gambling licences<\/h2>\n\n\n\n