Research Update: Skycity Entertainment Group Outlook Revised To Negative On Government Restrictions; 'BBB-' Ratings Affirmed

Additional restrictions and COVID-19 containment measures could compromise Skycity Entertainment Group Ltd.'s ability to maintain an adjusted debt-to-EBITDA ratio below 3.0x during a period of significant capital expenditure across the group's Adelaide development and NZICC rebuild. The deteriorating operating environment may test the effectiveness of Skycity's capital management framework. In our view, the group has a solid track record of prudent balance sheet management and ratings stability. The company is publically committed to maintaining the 'BBB-' rating, which we believe implies that it will take all reasonable actions to protect the interests of creditors. On March 20, 2020, S&P Global Ratings revised its outlook on Skycity to negative from stable. We affirmed the 'BBB-' long-term issuer credit rating on the

...- Additional restrictions and COVID-19 containment measures could compromise Skycity Entertainment Group Ltd.'s ability to maintain an adjusted debt-to-EBITDA ratio below 3.0x during a period of significant capital expenditure across the group's Adelaide development and NZICC rebuild. The deteriorating operating environment may test the effectiveness of Skycity's capital management framework. - In our view, the group has a solid track record of prudent balance sheet management and ratings stability. The company is publically committed to maintaining the '###-' rating, which we believe implies that it will take all reasonable actions to protect the interests of creditors. - On March 20, 2020, S&P Global Ratings revised its outlook on Skycity to negative from stable. We affirmed the '###-' long-term issuer credit rating on the company and issue ratings on the company's debt. - The negative outlook reflects our view that COVID-19-related restrictions are likely to pressure Skycity's earnings...

Research Update