AUCKLAND: SkyCity Entertainment Group Limited notified the S&P Global Ratings has revised the outlook for SkyCity’s long-term issuer credit rating and its debt issue ratings from ‘Negative’ to ‘Stable’.
S&P Global Ratings has affirmed SkyCity’s long-term issuer credit rating and its debt issue ratings as BBB-.
Rating Action Overview
– SKYCITY Entertainment Group Ltd.’s earnings recovery is progressing quicker than we anticipated. We forecast its adjusted debt-to-EBITDA ratio will remain below 3.0x by the end of fiscal 2021.
– In our view, SkyCity’s capital expenditure peak has likely passed and the company should be able to maintain credit metrics commensurate with the ‘BBB-‘ rating as it continues to navigate through the COVID-19 recovery phase.
– On April 16, 2021, S&P Global Ratings revised its outlook on SkyCity to stable from negative. At the same time, we affirmed our ‘BBB-‘ long-term issuer credit rating on the New Zealand-based casino operator and our ‘BBB-‘ long-term issue ratings on its debt.
– The stable outlook reflects our view that SkyCity will maintain its solid earnings recovery through the COVID-19 recovery phase over the next two years, and that the company will appropriately manage its remaining development activity in Auckland within our rating tolerances.
The stable outlook reflects our view that SkyCity will maintain its solid earnings recovery through the COVID-19 recovery phase over the next two years, 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.