Bulletin: Skycity's Proposed Equity Raising Will Alleviate Pressure On Capital Expenditure Funding; Rating Unaffected

MELBOURNE (S&P Global Ratings) May 11, 2016--S&P Global Ratings today said that New Zealand-based SKYCITY Entertainment Group Ltd.'s (SKC, BBB-/Stable) announcement that it has fully underwritten a NZ$263 million equity raising to help fund its development pipeline would have no impact on the rating. We consider the equity raising to be consistent with the group's commitment to maintaining the 'BBB-' rating as it should significantly alleviate the funding pressures associated with the redevelopment of the Adelaide casino, and the construction of the New Zealand International Convention Centre and Hobson St. Hotel over the next few years. We expect that at the height of the development program in the year ending June 30, 2019, SKC's debt-to-EBITDA will peak at the mid

...MELBOURNE (S&P Global Ratings) May 11, 2016--S&P Global Ratings today said that New Zealand-based SKYCITY Entertainment Group Ltd.'s (SKC, ###-/Stable) announcement that it has fully underwritten a NZ$263 million equity raising to help fund its development pipeline would have no impact on the rating. We consider the equity raising to be consistent with the group's commitment to maintaining the '###-' rating as it should significantly alleviate the funding pressures associated with the redevelopment of the Adelaide casino, and the construction of the New Zealand International Convention Centre and Hobson St. Hotel over the next few years. We expect that at the height of the development program in the year ending June 30, 2019, SKC's debt-to-EBITDA will peak at the mid 2x level, comfortably within tolerances for the current rating. Given SKC's intention to retain the Hobson St. Hotel, the company has significant financial flexibility to manage its capital base should operating conditions...

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