Bulletin: SKYCITY Entertainment Group Ltd.'s Balance Sheet Is Strong Enough To Fund Proposed Share Buyback

MELBOURNE (S&P Global Ratings) Feb. 13, 2019--S&P Global Ratings today said that New Zealand-based SKYCITY Entertainment Group Ltd. (SKC, BBB-/Stable) has sufficient balance-sheet strength to absorb its proposed on-market share buyback at the 'BBB-' rating level. The sale of Darwin Casino and Federal Street car park will result in cash inflows of at least NZ$228 million, broadly in line with our expectations. In our opinion, the proposed share buyback of up to 5% of issued capital or about NZ$125 million through calendar 2019, is somewhat negative from a credit perspective but remains within our tolerances at the 'BBB-' rating level, particularly in light of the expected reduction of net debt. We note the full buyback is pending the sale of

...MELBOURNE (S&P Global Ratings) Feb. 13, 2019--S&P Global Ratings today said that New Zealand-based SKYCITY Entertainment Group Ltd. (SKC, ###-/Stable) has sufficient balance-sheet strength to absorb its proposed on-market share buyback at the '###-' rating level. The sale of Darwin Casino and Federal Street car park will result in cash inflows of at least NZ$228 million, broadly in line with our expectations. In our opinion, the proposed share buyback of up to 5% of issued capital or about NZ$125 million through calendar 2019, is somewhat negative from a credit perspective but remains within our tolerances at the '###-' rating level, particularly in light of the expected reduction of net debt. We note the full buyback is pending the sale of the Auckland car park concession that will result in additional cash inflows. SKYCITY has announced that the total project costs for the New Zealand International Convention Centre will not be materially above the original budget of NZ$703 million. Under...

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