The decision was due to he company’s “lack of refinancing progress”.<\/p>\n\n\n\n\n\n\n\n
Cambodia.- Moody\u2019s Investor Services has downgraded the corporate family rating <\/strong>of NagaCorp Ltd from ‘B2’ to ‘B3’ due to the company’s “lack of refinancing progress for its US$472m bond coming due in July 2024. The bond forms all of the company\u2019s debt in its capital structure.”<\/p>\n\n\n\n Moody\u2019s analyst\u00a0Yu Sheng Tay\u00a0<\/strong>said: “Despite NagaCorp having reduced its discretionary spending, its ability to repay the bond depends on the pace of earnings recovery, which currently remains uncertain.”<\/p>\n\n\n\n Moody\u2019s downgraded its senior unsecured rating of NagaCorp\u2019s US dollar bond from \u2018B2\u2019 to \u2018B3\u2019. It added that its rating outlook for the casino operator has changed to \u2018negative\u2019. <\/p>\n\n\n\n Over the next 18 months, NagaCorp’s discretionary spending will decrease. Earlier this month, the company announced that it has decided to push back its Naga 3 project<\/a> <\/strong>in Phnom Penh by four years to 2029.<\/p>\n\n\n\n Due to this, the casino operator expects to “spend less than US$50m on development capital expenditure in 2023, compared with the company\u2019s previous guidance of US$100m to US$125m.” <\/p>\n\n\n\n Nevertheless, analysts stressed the company’s ability to meet its bond repayment obligations depends on the pace of its earnings recovery, which remains uncertain. Moody’s analysts anticipated a progressive improvement in NagaCorp’s earnings within the next 18 months, aligning with the revival of Cambodia’s tourism sector and\u00a0the return of Chinese tourists<\/a>.<\/p>\n\n\n\n According to Moody’s estimations, NagaCorp could generate EBITDA ranging between US$350m and US$370m in 2023, followed by a projected increase to US$485m in 2024. However, a slower-than-anticipated recovery may exert pressure on the company’s liquidity.<\/p>\n\n\n\n