S&P Global Ratings on Dec. 14 said Wynn Resorts Ltd. will remain on CreditWatch with negative implications as it expects the casino industry to recover slowly from the COVID-19 pandemic.
Las Vegas-based Wynn Resorts, which currently has a BB- issuer credit rating, likely will be unable to reduce leverage below 6x and improve other credit metrics until 2022, the rating agency said in a statement.
S&P Global Ratings said Wynn Resorts and the wider casino industry "likely will not show significant improvement until the second half of 2021," adding that it expects "leverage to remain very high in 2021."
Wynn Resorts likely will be in a "zero-revenue environment" until 2022, the rating agency said.
Wynn Macau Ltd., a majority-owned subsidiary of Wynn Resorts and which plans to issue additional notes to repay debt, has sufficient liquidity to weather the industry fallout through 2022. Ratings said "Wynn is heavily reliant on a recovery in Macau," which accounted for 75% of its property-level EBITDA in 2019. The market's recovery will remain bumpy for the next two years, it added.
As of Nov. 30, Wynn had about $2.1 billion in available liquidity in Macao.
S&P Global Ratings placed the ratings of Wynn Resorts and its subsidiaries on CreditWatch with negative implications in February.