Bulletin: SkyCity To Rebound As Restrictions Ease

MELBOURNE (S&P Global Ratings) Oct. 25, 2021--S&P Global Ratings today said that casino operator SKYCITY Entertainment Group Ltd.'s (BBB-/Stable/--) operating performance should rebound once its Auckland asset reopens after stage 3 restrictions ease. That said, prolonged COVID-19-related operational disruptions beyond Dec. 31, 2021, could cause an S&P adjusted debt-to-EBITDA ratio to temporarily rise above 3.0x, outside expectations for the 'BBB-' rating. We expect that a relatively quick earnings recovery as COVID-19 restrictions abate, together with ongoing prudent capital management, should underpin the group's credit quality. Auckland and Hamilton remain under alert level 3 conditions, but the New Zealand government recently announced a move to a traffic-light model. This provides a roadmap to re-opening as soon as each region achieves 90%

...October 24, 2021 MELBOURNE (S&P Global Ratings) Oct. 25, 2021--S&P Global Ratings today said that casino operator SKYCITY Entertainment Group Ltd.'s (###-/Stable/--) operating performance should rebound once its Auckland asset reopens after stage 3 restrictions ease. That said, prolonged COVID-19-related operational disruptions beyond Dec. 31, 2021, could cause an S&P adjusted debt-to-EBITDA ratio to temporarily rise above 3.0x, outside expectations for the '###-' rating. We expect that a relatively quick earnings recovery as COVID-19 restrictions abate, together with ongoing prudent capital management, should underpin the group's credit quality. Auckland and Hamilton remain under alert level 3 conditions, but the New Zealand government recently announced a move to a traffic-light model. This provides a roadmap to re-opening as soon as each region achieves 90% second-dose vaccination. SkyCity Adelaide in Australia is operating under level 1 restrictions. SkyCity remains committed to an...

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