SKYCITY Entertainment Group Ltd.

Tempering these strengths are COVID-19 related business interruptions to trading, execution risks associated with the group's major developments in Auckland, earnings concentration in Auckland, and the risks of operating in a heavily regulated industry. The stable outlook reflects our view that SKYCITY will maintain its solid earnings through the COVID-19 recovery phase and that the company will appropriately manage its remaining development activity in Auckland within our rating tolerances. Our base case does not include any prolonged period of government-imposed operational closures due to COVID-19. We could lower the rating on SKYCITY if the company's earnings recovery is weaker than we expect, resulting in its adjusted debt-to-EBITDA ratio sustaining above 3.0x, if not offset by capital management actions. The company's

...SKYCITY Entertainment Group Ltd.'s (SkyCity) long-term monopoly positions in its key markets will continue to underpin its business strength. The company's results for the half year ended Dec. 31, 2020 revealed the strength of its long-term monopoly positions, particularly in Auckland. All product classes including electronic gaming machines (EGM) and tables were above 2H20 levels. Tempering these strengths are COVID-19 related business interruptions to trading, execution risks associated with the group's major developments in Auckland, earnings concentration in Auckland, and the risks of operating in a heavily regulated industry. In our view, the group has a solid track record of prudent balance sheet management and ratings stability. SkyCity has demonstrated its public commitment to maintaining the '###-' rating through a NZ$230 million equity raising last year to support group liquidity levels during the height of the COVID-19 pandemic. Other previous actions include the suspension of...

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