Gambling and Casinos Industry News SampleMar 8, 2006 13:01:37
WYNN RESORTS: S&P Puts B+ Corporate Credit Rating on CreditWatch
FREDERICK, Maryland (SunStream News) -- Standard & Poor's Ratings Services placed its ratings on casino owner operator Wynn Resorts Ltd., including its 'B+' corporate credit rating, and ratings on its wholly owned subsidiary, Wynn Las Vegas LLC (jointly, Wynn), on CreditWatch with positive implications. The company had about $2.1 billion in consolidated debt outstanding at Dec. 31, 2005.
The CreditWatch placement follows Wynn Resorts' announcement that it had entered into an agreement to sell a subconcession in the Macau Special Administrative Region (SAR) of the People's Republic of China for $900 million to Publishing and Broadcasting Ltd. (PBL; A-/Stable/A-2). The subconcession will allow PBL to own and operate hotel casino resorts in Macau SAR. This transaction is subject to Macau government approval.
"We believe the proposed transaction significantly enhances Wynn's financial flexibility by providing added liquidity to fund its ongoing and expected capital spending initiatives, which are comprised mainly of Encore at Wynn Las Vegas and additional growth opportunities in Macau," said Standard & Poor's credit analyst Michael Scerbo.
In resolving its CreditWatch listing, Standard & Poor's will meet with management and review Wynn Las Vegas' current operating trends, near- and intermediate-term growth objectives, including the scope and timing of an Encore development, and pro forma capital structure. If an upgrade for the company were the ultimate outcome of Standard & Poor's analysis, it would be limited to one notch.ss/bal
Source: Troubled Company News -- US & Canada
Publication Date: 2006-03-08
IND: CNO
GEO: n-us-nv
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