Peticioni i drejtohet: comumity

Moody's Investors Service said it downgraded the corporate family rating for casino development and operator Naga Corp Ltd to "B3" from "B2". Moody's Investors Service also changed its outlook for Naga Corp from "under review" to "negative," according to a report on Monday. 안전 슬롯사이트

The rating agency said it also downgraded its senior unsecured rating on the company's U.S. dollar bonds to "B3." It noted the bonds are guaranteed "unconditionally irrevocable" by Nagakov's main operating subsidiary.

Nagakov holds a long-lived exclusive casino license in Phnom Penh, the Cambodian capital, which operates the Nagaworld resort complex.

"The downgrade and negative outlook reflect Nagakov's lack of refinancing progress on the $472 million U.S. dollar bond due in July 2024. The bond forms all the company's debt in its capital structure," Moody's analyst Yu Sheng-tai quoted in the report.

"Despite Nagakov's reduced discretionary spending, the ability to repay bonds depends on the pace of earnings recovery, leaving uncertainty at the moment," the analyst added.

"The terms of financing for high-yielding Asian companies remain tight, raising the likelihood of struggling exchanges," Moody's said.

"Nagakov lacks banking facilities and has limited sources of liquidity given its sellable non-core assets," it added.

The ratings agency expects Nagakov's discretionary spending to fall "over the next 18 months."

In early June, the casino company announced that construction of the Naga 3 adding to the Naga World gaming complex had been postponed by four years to September 2029. Naga Corporation, which has not paid a cash dividend since 2021, will pay a scrip dividend instead of cash, as announced in April.

Moody's said Nagakov "expects to spend less than $50 million on development capital expenditure in 2023." This compares to the company's previous guidance of $100 million to $125 million.

"Moody sees Nagakov's reduction in discretionary spending as a credit positive. However, the company's ability to generate enough free cash flow to repay bonds depends on the pace of its earnings recovery, which remains uncertain at the moment," it added.

According to the agency, Nagakov's revenue will "improve over the next 18 months" as Cambodia's tourism sector "continues to recover and benefit from the return of Chinese tourists."

Moody's forecasts that casino operators will see earnings before interest, taxation, depreciation and amortization (EBITDA) of "approximately $350-370 million in 2023 and approximately $485 million in 2024," Moody's said.

In the first quarter of 2023, the company generated EBITDA of $59 million, down 3.3% year over year "due to increased employee costs and cadence."