Tear Sheet: SkyCity Entertainment Group Ltd.

This report does not constitute a rating action. Average customer spend at SkyCity?s key venues will remain weak amid prolonged anemic economic conditions in New Zealand. This is despite stable visitation levels at its precincts. While New Zealand?s aggressive interest rate cuts commenced in August 2024, the benefits have been slow, given the high share of fixed-rate mortgages in the country. SkyCity?s earnings margins are also hit from non-recurring costs associated with a risk transformation program at its Adelaide casino and pre-opening costs for its New Zealand International Convention Centre. In addition, sizable cash outflows from AUSTRAC?s fine and additional casino duty obligations have increased debt in fiscal 2025 (ended June). A significant recovery in SkyCity?s EBITDA will be delayed.

...Rating Component Scores Foreign currency issuer credit rating ###-/Stable/-- Local currency issuer credit rating ###-/Stable/-- Business risk Satisfactory Country risk Low Industry risk Intermediate Competitive position Satisfactory Financial risk Intermediate Cash flow/leverage Intermediate Anchor ###- Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy Neutral (no impact) Liquidity Adequate (no impact) Management and governance Neutral (no impact) Comparable rating analysis Neutral (no impact) Stand-alone credit profile ###-...

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