SkyCity Entertainment Group Ltd.'s (SkyCity) proposed fully underwritten NZ$240 million equity raising aligns with the group's financial policies and supports the 'BBB-' rating. Nonetheless, SkyCity's debt-to-EBITDA ratio is likely to remain elevated over the next 12-18 months due to cyclically weak earnings and sizable cash outflows from regulatory fines and other costs. On Aug. 21, 2025, we revised our rating outlook on SkyCity to negative from stable and affirmed our 'BBB-' long-term issuer credit rating. At the same time, we affirmed the 'BBB-' long-term issue rating on the company's debt. The negative outlook reflects our view that the company's adjusted debt to EBITDA could remain above 3.0x beyond fiscal 2026 due to prolonged weak economic conditions in New Zealand and
