Wednesday, August 10, 2022

Moody's says Crown's Nobu deal is credit negative


Moody's Investors Service said that Crown Resorts Limited's announcement that it has acquired a 20 percent interest in the international restaurant and hotel company, Nobu, for $100 million is credit negative, but has no immediate impact on its ratings. 

"Crown's investment in NOBU is credit negative as it represents a new financial commitment at a time that Crown has an extensive pipeline of projects to be undertaken over the next four years,”  said Maurice O'Connell, a Moody's VP and senior credit officer.

These projects include completion of a 500-room hotel in Perth, expansion into Sydney, investing in the Alon Las Vegas Project and, over a longer term, developing a hotel and apartment complex in Melbourne in conjunction with the Schiavello Group.

"At the same time, the substantial project pipeline coincides with lower expectations for increasing dividends from Crown's investment in Melco Crown Entertainment,” added O'Connell.

The outlook for a strong and sustainable rise in dividend income from MCE is negatively impacted by the sharp downturn in Macau gaming revenue, which in October was down 28.4 percent year-on-year. 

The lower expectations for increasing dividends from Crown's investment in MCE places pressure on Crown's ability to increase debt materially within the parameters set for the rating. 

 

 

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

3rd party / Cookies
Show settings
Contact us

ASIA GAMING BRIEF
PO Box 1139, Macau SAR
Tel: +853 2871 7267
Fax: +853 2871 7264

Asia Gaming Brief