...- Government-led casino closures aimed at containing the spread of COVID-19 will generate negative cash flows at Skycity's New Zealand and Australian assets. We believe these measures could compromise the group's ability to maintain an adjusted debt-to-EBITDA ratio below 3.0x during a period of significant capital expenditure. - 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 24, 2020, S&P Global Ratings placed the '###-' long-term issuer credit rating on Skycity and '###-' issue credit rating on the company's debt on CreditWatch with negative implications. - The CreditWatch negative placement reflects our view that operational closures across Skycity's key casino assets, together with the funding of significant capital expenditure, may cause Skycity's...
