{"id":6401,"date":"2020-05-12T12:12:36","date_gmt":"2020-05-12T12:12:36","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=6401"},"modified":"2026-04-24T05:18:48","modified_gmt":"2026-04-24T08:18:48","slug":"fitch-okada-manila-finance-philippines","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/fitch-okada-manila-finance-philippines","title":{"rendered":"Fitch expects 70% revenue drop for Okada Manila in Q2"},"content":{"rendered":"\n

Fitch highlighted the financial impact of Covid-19 and Universal’s greater exposure as a single property operator.<\/p>\n\n\n\n\n\n\n\n

Philippines.- Fitch Ratings has downgraded Universal Entertainment’s credit rating and expects its Okada Manila property to post a 70 per cent drop in Q2 revenue.<\/p>\n\n\n\n

Universal Entertainment Corporation’s (UE) Long-Term Issuer Default Rating went from ‘B+’ to ‘B’ and the senior secured rating to ‘B’ from ‘B+’ with a Recovery Rating of ‘RR4’. <\/p>\n\n\n\n

Fitch<\/em><\/strong> highlighted the financial impact of Covid-19 and Universal’s greater exposure as a single property operator. <\/p>\n\n\n\n

It said: “The downgrade is driven by increasing risks to UE’s earnings and cash flows as a result of the Coronavirus pandemic.<\/p>\n\n\n\n

“The gaming sector is highly exposed to the outbreak and UE’s vulnerability is exacerbated by its single location focus and its lack of a track record in casino operations as its integrated resort (IR) in the Philippines, the Okada Manila, is still in the ramp-up phase.”<\/p>\n\n\n\n

Regarding Okada Manila’s potential revenue drop, it added: “Fitch believes the IR is likely to remain closed through May and only resume operations in mid-June.<\/p>\n\n\n\n

“Under this scenario, we assume a 70 per cent YoY drop in revenue in 2Q20, followed by a 25 per cent decline in 3Q20 and a 15 per cent decline in 4Q20, in line with our assumptions for comparable global casino markets.”<\/p>\n\n\n\n

In March, Fitch downgraded MGM<\/a><\/em><\/strong>, citing its “decreased financial flexibility\u201d to face the pandemic.<\/p>\n","protected":false},"excerpt":{"rendered":"

Fitch highlighted the financial impact of Covid-19 and Universal’s greater exposure as a single property operator.<\/p>\n","protected":false},"author":2,"featured_media":3107,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Fitch Ratings has downgraded Universal Entertainment's Long-Term Issuer Default Rating from 'B+' to 'B', citing the severe financial impact of Covid-19 on its single integrated resort, Okada Manila, in the Philippines. The agency projects a 70% year-over-year revenue decline for Okada Manila in Q2 2020, attributing the vulnerability to its single-location focus and ongoing ramp-up phase. This downgrade underscores the heightened enterprise risk for operators with concentrated asset portfolios amidst market disruptions.","focusai_entities":"Universal Entertainment Corporation, Fitch Ratings, Okada Manila, MGM","focusai_location":"Philippines","focusai_target_profile":"ceo_executive (0.9), regulator (0.7), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.8)","focusai_suggestions":[{"label":"Impact on Capital Structure?","query":"What are the long-term implications of this credit downgrade on Universal Entertainment's capital structure, debt covenants, and future capital raising initiatives?"},{"label":"Single-Asset Resilience?","query":"How does the single-asset concentration of Okada Manila compare to diversified integrated resort portfolios in terms of resilience to market downturns and external shocks?"}],"footnotes":""},"categories":[161,163,16333],"tags":[17703,8986,128],"class_list":["post-6401","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news","category-finance-news","category-south-east-asia-news","tag-fitch-ratings","tag-okada-manila","tag-philippines"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/6401","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=6401"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/6401\/revisions"}],"predecessor-version":[{"id":777009473,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/6401\/revisions\/777009473"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/3107"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=6401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=6401"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=6401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}