calls for a potential sale-leaseback<\/a> deal on the Horseshoe Casino Baltimore.<\/p>\n<\/div>\nEven with the $2.5 billion debt sale, Moody’s sees Vici’s leverage ratio remaining below the average for its peer group. Companies in the industry, on average, trade at 6x trailing 12-month (TTM) debt to earnings before interest, taxes, depreciation and amortization (EBITDA).<\/p>\n
\u201cVICI finished the third quarter of 2019 with TTM Net debt to EBITDA of 4.5x. But Moody’s expects management to operate near the mid 5.0x net debt to EBITDA level long-term,\u201d said the ratings agency.<\/strong><\/p>\nAngling for an Upgrade<\/h2>\n There’s a path for Vici to get to investment-grade territory, which would help the company lower its financing costs.<\/p>\n
\u201cAn upgrade would require unencumbered assets to gross assets to approach 50%, and a prudent growth strategy on a leverage neutral basis, as the REIT seeks to diversify into non-gaming properties in order to fulfill its external portfolio growth expectations, while maintaining ample liquidity,\u201d notes Moody’s<\/strong>.<\/p>\nAt the end of the third quarter, Vici owned 24 gaming properties, four golf courses, and 34 acres of undeveloped land near the Strip. But that number of venues is slated to change over the near-term, as the company has several pending acquisitions in the works. Additionally, the company and Caesars said last week they’re selling Harrah’s Reno for $50 million<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"The Vici Properties (NYSE:VICI) credit rating has been boosted by Moody’s Investors Service to Ba3 from B1 with a stable outlook, moving the real estate company closer to investment-grade territory. Moody’s decision to elevate Vici was revealed on the same day that the gaming real estate investment trust (REIT) said it’s selling $2.5 billion worth […]<\/p>\n","protected":false},"author":46,"featured_media":124994,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,33810],"tags":[],"acf":[],"yoast_head":"\n
Vici Properties Wins Credit Rating Upgrade From Moody's<\/title>\n \n \n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n \n \n\t \n\t \n\t \n