Bulletin: SkyCity Recovery Looms After Dull First Half

MELBOURNE (S&P Global Ratings) Feb. 16, 2022--SkyCity Entertainment Group Ltd. (BBB-/Stable/--) is set for a turnaround in operating performance in the rest of 2022 even though the pandemic hit the business in the first half of fiscal 2022. We view the COVID-19-related shutdowns in New Zealand and Australia as transitory and expect the casino operator's performance to improve progressively during the year. Further, we expect a relatively quick earnings recovery as COVID-19 restrictions abate, which, together with ongoing prudent capital management and ample liquidity, should underpin the group's credit quality. SkyCity was heavily affected by COVID-19 restrictions during the first half of fiscal 2022. Its major Auckland asset was closed for 60% of the first half and its other sites

...February 15, 2022 MELBOURNE (S&P Global Ratings) Feb. 16, 2022--SkyCity Entertainment Group Ltd. (###-/Stable/--) is set for a turnaround in operating performance in the rest of 2022 even though the pandemic hit the business in the first half of fiscal 2022. We view the COVID-19-related shutdowns in New Zealand and Australia as transitory and expect the casino operator's performance to improve progressively during the year. Further, we expect a relatively quick earnings recovery as COVID-19 restrictions abate, which, together with ongoing prudent capital management and ample liquidity, should underpin the group's credit quality. SkyCity was heavily affected by COVID-19 restrictions during the first half of fiscal 2022. Its major Auckland asset was closed for 60% of the first half and its other sites were subject to closure or capacity restrictions. As a result, reported EBITDA declined 86% from the previous corresponding period and the company received debt covenant waivers from its bank...

Bulletin