{"id":299844,"date":"2023-11-21T05:00:39","date_gmt":"2023-11-21T11:00:39","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=299844"},"modified":"2023-11-21T14:54:02","modified_gmt":"2023-11-21T20:54:02","slug":"wynn-credit-rating-upgraded-by-sp","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/wynn-credit-rating-upgraded-by-sp\/","title":{"rendered":"Wynn Resorts Credit Rating Upgraded by S&P, Still Junk Grade"},"content":{"rendered":"

Wynn Resorts’ (NASDAQ: WYNN) credit rating was upgraded one notch to \u201cBB-\u201c from \u201cB+\u201d by Standard Poor\u2019s (S&P). The same action was applied to Wynn Macau’s corporate credit profile.<\/p>\n

\"Wynn
Wynn and Encore on the Las Vegas Strip. The operator and its Wynn Macau unit had their credit ratings upgraded by S&P. (Image: Vegas Means Business)<\/figcaption><\/figure>\n

With the move to \u201cBB-\u201c, Wynn\u2019s credit grade is still three notches below investment-grade territory. But the latest upgrade highlights ongoing recovery in Macau, the company\u2019s largest operating market.<\/p>\n

In a report, S&P noted 2024 mass-market gross gaming revenue (GGR) in the special administrative region (SAR) could be 5% to 15% ahead of levels seen in 2019. The research firm has a \u201cstable\u201d outlook on Wynn\u2019s credit profile.<\/p>\n

The stable outlook reflects our expectation that the ongoing recovery in the company’s cash flow in Macao, along with relatively stable U.S. cash flow next year, will likely support an improvement in its leverage to the high-4x area, from low-5x in 2023, despite its increasing development spending and shareholder returns,\u201d according to S&P.<\/p><\/blockquote>\n

Wynn\u2019s shareholder rewards include ongoing buybacks and the resumption of its quarterly dividend<\/a>, which the operator restarted earlier this year.<\/p>\n

Upgrade Could Spur Momentum<\/h2>\n

S&P\u2019s upgrade of Wynn\u2019s and Wynn Macau\u2019s credit grades arrived at an interesting time. Recently, shares of Macau concessionaires slumped, falling to levels last seen in 2022, when there was barely any activity in the gaming enclave.<\/p>\n

\n

Conversely, global fixed-income investors have been flocking to debt issued<\/a>\u00a0by Macau gaming operators, embracing steadier high-yield alternatives to volatile Chinese real estate bonds. The Wynn upgrades could encourage more of that enthusiasm.<\/p>\n<\/div>\n

For Wynn bondholders and equity investors, the signs point to a potentially solid 2024 because the operator is accomplishing that feat this year.<\/p>\n

\u201cWe expect the improvement in the company’s EBITDA will likely accelerate over the next several quarters on increased Macao visitation and the greater availability of hotel rooms in the market,\u201d adds S&P. \u201cTherefore, we estimate Wynn’s Macao EBITDA will be about 95% of its 2019 levels in 2024. This implies that Wynn’s S&P Global Ratings lease-adjusted net leverage will likely improve below 5x in 2024 from the low-5x area in 2023. This compares with 4.9x in 2019.\u201d<\/p>\n

Wynn Can Absorb Upcoming Spending<\/h2>\n

Next year could be an opportune time for Wynn to drive leverage lower. That’s because expenditures on its two Macau integrated resorts, Encore Boston Harbor in the U.S. and Wynn Al Marjan Island in the United Arab Emirates (UAE), are already planned.<\/p>\n

\n

New York is the wild card in terms of potential spending that could increase the operator\u2019s leverage. In partnership with commercial real estate firm Related Cos., Wynn is attempting to procure one of three New York City casino permits<\/a>. Should it be one of the winners, the company would likely embark upon a $5 billion (or more ) project, though costs would be shared with Related.<\/p>\n<\/div>\n

\u201cIf Wynn secures a license in New York, the license and development costs could cause its leverage to rise above 5x. We believe it is unlikely New York will select licensees before the second half of 2024, and don’t anticipate the company would initiate any material capital spending before 2025,\u201d concludes S&P. \u201cGiven the complexity of building in New York and the likely scale of the project, we anticipate the development could take at least 3-4 years to complete.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Wynn Resorts’ (NASDAQ: WYNN) credit rating was upgraded one notch to \u201cBB-\u201c from \u201cB+\u201d by Standard Poor\u2019s (S&P). The same action was applied to Wynn Macau’s corporate credit profile. With the move to \u201cBB-\u201c, Wynn\u2019s credit grade is still three notches below investment-grade territory. But the latest upgrade highlights ongoing recovery in Macau, the company\u2019s […]<\/p>\n","protected":false},"author":46,"featured_media":250969,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10],"tags":[81913,81903],"acf":[],"yoast_head":"\nWynn Credit Rating Upgraded By S&P<\/title>\n<meta name=\"description\" content=\"Wynn, Wynn Macau credit ratings boosted by S&P, still junk status.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/wynn-credit-rating-upgraded-by-sp\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Wynn Credit Rating Upgraded By S&P\" \/>\n<meta property=\"og:description\" content=\"Wynn, Wynn Macau credit ratings boosted by S&P, still junk status.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/wynn-credit-rating-upgraded-by-sp\/\" \/>\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=\"2023-11-21T11:00:39+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-11-21T20:54:02+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/wynn.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"675\" \/>\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\/wynn-credit-rating-upgraded-by-sp\/\",\"url\":\"https:\/\/www.casino.org\/news\/wynn-credit-rating-upgraded-by-sp\/\",\"name\":\"Wynn Credit Rating Upgraded By S&P\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/wynn-credit-rating-upgraded-by-sp\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/wynn-credit-rating-upgraded-by-sp\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/wynn.jpg\",\"datePublished\":\"2023-11-21T11:00:39+00:00\",\"dateModified\":\"2023-11-21T20:54:02+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Wynn, Wynn Macau credit ratings boosted by S&P, still junk status.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/wynn-credit-rating-upgraded-by-sp\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/wynn-credit-rating-upgraded-by-sp\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/wynn-credit-rating-upgraded-by-sp\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/wynn.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/01\/wynn.jpg\",\"width\":1200,\"height\":675,\"caption\":\"Wynn and Encore on the Las Vegas Strip. 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