{"id":144683,"date":"2020-08-12T12:58:10","date_gmt":"2020-08-12T19:58:10","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=144683"},"modified":"2020-08-12T13:44:44","modified_gmt":"2020-08-12T20:44:44","slug":"gaming-industry-beset-by-credit-downgrades-owing-to-pandemic","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/","title":{"rendered":"Gaming, Leisure Industry Epicenter of COVID-19 Credit Downgrades"},"content":{"rendered":"

The hotel, gaming and leisure sector is proving its vulnerabilities to global pandemics, and that’s evident in financial market parlance, where the industry suffered more corporate credit downgrades than any other since March.<\/p>\n

\"Credit
It’s been a rough credit climate for gaming and leisure companies. But market participants are betting on a rebound. (Image: Getty Images)<\/figcaption><\/figure>\n

From March 1 through July 31, 62 percent of issues in the hotel, gaming and leisure space were downgraded, according to Moody’s Investors Service. That’s just ahead of the 61 percent in the consumer transportation arena, an industry including the ravaged airline and cruise businesses.<\/p>\n

The spread of the coronavirus has placed significant stress on the global economy. But corporate downgrades reveal a thorough and measured approach to credit during turbulent,\u201d<\/strong> said the research firm.<\/p><\/blockquote>\n

Of the top 10 industries in terms of percentage of bond downgrade since March 1, four, including gaming and leisure, hail from the consumer discretionary sector. That’s twice as many as the next closest group<\/strong>.<\/p>\n

Downgrades Galore<\/h2>\n

During the initial wave of coronavirus cases in the first quarter and into the early part of the June quarter, credit rating agencies were quick to lower grades and outlooks on a broad swath of gaming entities<\/a>, including integrated resort operators, device manufacturers, and sportsbook firms.<\/p>\n

For its part, Moody’s says it’s lowered ratings on 900 corporate debt issues across all sectors this year, with 797 of those bonds already residing in junk territory prior to the 2020 reduction. The research firm said of the other 103 downgrades 70 retained investment-grade status, while 33 lost that designation and moved to the high-yield space.<\/p>\n

\n

Among the familiar gaming names<\/a> Moody’s tagged with lower grades or \u201cnegative\u201d outlooks this year are MGM Resorts International (NYSE:MGM), William Hill (OTC:WIMHY), and Penn National Gaming (NASDAQ:PENN), among others.<\/strong><\/p>\n<\/div>\n

Of interest to fixed income investors considering the gaming industry that are clinging to investment-grade marks, Moody’s says 88 percent of the 33 issues it lowered to junk for the first time carried \u201cnegative\u201d outlooks prior to those downward revisions.<\/p>\n

Not All Bad News<\/h2>\n

For any company, gaming or otherwise, carrying high-yield bond ratings increases financing costs because if these firms tap debt markets, investors demand higher interest payments for what they perceive as elevated risk.<\/p>\n

However, in the COVID-19 climate, the Federal Reserve is backstopping the junk bond market, restoring investors’ faith in the asset class while pushing the yield on the Markit iBoxx USD Liquid High Yield Index down to 4.42 percent.<\/p>\n

Specific to the gaming industry, companies aren’t having issues<\/a> raising capital even as the pandemic punishes profits. Whether it’s selling bonds, tapping credit revolvers, or issuing new equity, casino operators, gaming real estate firms, device makers, and sportsbook operators are finding receptive audiences in the investment community for their capital-raising efforts.<\/p>\n

Underscoring that point is the fact that the bulk of the cash raised by gaming entities occurred while US casinos were shut down, confirming investors are willing to roll the dice — as long as they’re compensated for the risk — on the industry bouncing back.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The hotel, gaming and leisure sector is proving its vulnerabilities to global pandemics, and that’s evident in financial market parlance, where the industry suffered more corporate credit downgrades than any other since March. From March 1 through July 31, 62 percent of issues in the hotel, gaming and leisure space were downgraded, according to Moody’s […]<\/p>\n","protected":false},"author":46,"featured_media":144688,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\nGaming Industry Beset by Credit Downgrades Owing to Pandemic<\/title>\n<meta name=\"description\" content=\"The hotel, gaming and leisure is enduring a araft credit downgrades due to the coroanvirus pandemic, but investors like casino bonds,\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gaming Industry Beset by Credit Downgrades Owing to Pandemic\" \/>\n<meta property=\"og:description\" content=\"The hotel, gaming and leisure is enduring a araft credit downgrades due to the coroanvirus pandemic, but investors like casino bonds,\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2020-08-12T19:58:10+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-08-12T20:44:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/trader2-scaled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"3500\" \/>\n\t<meta property=\"og:image:height\" content=\"2333\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/\",\"url\":\"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/\",\"name\":\"Gaming Industry Beset by Credit Downgrades Owing to Pandemic\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/trader2-scaled.jpg\",\"datePublished\":\"2020-08-12T19:58:10+00:00\",\"dateModified\":\"2020-08-12T20:44:44+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"The hotel, gaming and leisure is enduring a araft credit downgrades due to the coroanvirus pandemic, but investors like casino bonds,\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/trader2-scaled.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/trader2-scaled.jpg\",\"width\":3500,\"height\":2333,\"caption\":\"It's been a rough credit climate for gaming and leisure companies, but market participants are betting on a rebound. (Image: Getty Images)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Gaming, Leisure Industry Epicenter of COVID-19 Credit Downgrades\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Gaming Industry Beset by Credit Downgrades Owing to Pandemic","description":"The hotel, gaming and leisure is enduring a araft credit downgrades due to the coroanvirus pandemic, but investors like casino bonds,","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"Gaming Industry Beset by Credit Downgrades Owing to Pandemic","og_description":"The hotel, gaming and leisure is enduring a araft credit downgrades due to the coroanvirus pandemic, but investors like casino bonds,","og_url":"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2020-08-12T19:58:10+00:00","article_modified_time":"2020-08-12T20:44:44+00:00","og_image":[{"width":3500,"height":2333,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/trader2-scaled.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/","url":"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/","name":"Gaming Industry Beset by Credit Downgrades Owing to Pandemic","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/trader2-scaled.jpg","datePublished":"2020-08-12T19:58:10+00:00","dateModified":"2020-08-12T20:44:44+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"The hotel, gaming and leisure is enduring a araft credit downgrades due to the coroanvirus pandemic, but investors like casino bonds,","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/trader2-scaled.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/08\/trader2-scaled.jpg","width":3500,"height":2333,"caption":"It's been a rough credit climate for gaming and leisure companies, but market participants are betting on a rebound. (Image: Getty Images)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/gaming-industry-beset-by-credit-downgrades-owing-to-pandemic\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"Gaming, Leisure Industry Epicenter of COVID-19 Credit Downgrades"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/144683"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=144683"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/144683\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/144688"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=144683"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=144683"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=144683"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}