SkyCity Entertainment Group Ltd.

This report does not constitute a rating action. Overview Key strengths Key risks Long-dated exclusive casino licenses in New Zealand and Australia. Prolonged economic weakness in New Zealand that continues to constrain gaming and non-gaming revenues. Supportive financial policies and creditor-friendly capital initiatives. Heightened regulatory risk and rising compliance costs, particularly at SkyCity Adelaide. Diversified earnings from its integrated casino, hospitality, and lodging operating model. Earnings concentration risk from SkyCity's key Auckland casino. Execution risks associated with implementing carded play across SkyCity?s casinos. SkyCity Entertainment Group Ltd.?s successful execution of asset sales is important for maintaining rating stability. The company is committed to completing about NZ$200 million in asset sales by February 2027, and will likely use a portion of

...SkyCity Entertainment Group Ltd.'s successful execution of asset sales is important for maintaining rating stability. The company is committed to completing about NZ$200 million in asset sales by February 2027, and will likely use a portion of the sale proceeds to repay debt. Its goal is to reduce its ratio of net debt to underlying EBITDA on company measure to below 2x. We believe SkyCity's NZ$240 million equity raising completed in fiscal 2026 with receipt of funds in September 2025 was crucial to easing strains on the company's credit metrics. Despite this,...

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