Midwest Gaming Borrower LLC

Overview Key strengths Key risks Market share leader in the Chicagoland gaming market because of its favorable location and good population demographics. New competitors pose a threat to its market position over the longer term. Forecasted debt to EBITDA in the mid-3x area over the next two years provides good cushion relative to our 5x downgrade threshold. Presence in a highly competitive gaming market. High exposure to event risk and EBITDA volatility as a single casino operator. MGB?s 2023 revenue grew in the low-single-digit percent area compared with the previous year, as strong first-quarter growth at its Rivers Des Plaines casino offset revenue declines in the second half of the year as it absorbed new competition. The company's adjusted debt

...We expect Midwest Gaming Borrower LLC (MGB) will sustain S&P Global Ratings-adjusted leverage comfortably below 5x over the next two years despite modest operating volatility due to new competition. MGB's 2023 revenue grew in the low-single-digit percent area compared with the previous year, as strong first-quarter growth at its Rivers Des Plaines casino offset revenue declines in the second half of the year as it absorbed new competition. The company's adjusted debt to EBITDA was 3.6x in 2023, unchanged compared with 2022, as EBITDA was relatively flat. Under our forecast, we expect MGB's S&P Global Ratings-adjusted leverage to be relatively flat again this year because we expect only a small decline in EBITDA compared to last year. We forecast revenue to decrease in the low- to mid-single digit percent area in fiscal 2024 due to the opening of Bally's Corp.'s temporary downtown Chicago casino in late 2023, and to a lesser extent, the American Place temporary casino in Waukegan, Ill.,...

Full Report