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Standard & Poor gives SkyCIty bonds 'BBB-' rating

Standard & Poor's Ratings Services has assigned its 'BBB-' rating to SkyCity Entertainment's NZ$100 million ($64.8 million) seven-year bonds.

The unsecured, fixed-rate bonds, which will mature on September 28, 2022, will be used to pay down drawings on the company's bank facilities. 

“The 'BBB-' issuer credit rating on SkyCity reflects the group's solid market positions underpinned by long-term exclusive casino licenses in its key markets; good asset quality; and resilience to economic cycles,” the ratings company said.

Tempering these strengths are execution risks associated with major developments in 

Auckland and Adelaide; earnings concentration in Auckland; and the risks of operating in a heavily regulated industry.

“We expect the group to proactively manage its financial risk profile in line with expectations for the rating during the peak of the development period.” 

Asia Gaming Brief is a news and intelligence service providing up to date market information for worldwide executives on relevant gaming issues in Asia.

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