Wynn Resorts’ financial division has received positive news from Moody’s Investors Service, as the credit outlook has been upgraded from “stable” to “positive.” Despite maintaining a “B1” rating on the company’s debt, which is four notches below investment grade, Moody’s sees a bright future for Wynn Resorts.
The upgrade in credit outlook is attributed to the ongoing recovery in Macau, as well as the strong performance of Wynn’s Las Vegas and Encore Boston Harbor properties. While third-quarter results for Macau operators were lackluster, the overall gross gaming revenue in the region has been on the rise since the pandemic began, with expectations of further growth in 2025.
Moody’s projected an improved leverage for Wynn Resorts in 2024, with the debt/earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio expected to be in the mid 5x range. This positive outlook is supported by the recovery in Macau’s gaming market and the consistent performance of the company’s properties in Las Vegas and Boston.
Furthermore, Moody’s highlighted Wynn’s efforts to reduce its debt burden, which has been viewed favorably by the agency. The company’s recent reduction in debt, along with its strong liquidity position, has contributed to the positive credit outlook.
Looking ahead, Moody’s emphasized the importance of maintaining good liquidity and continuing to reduce debt for Wynn Resorts to potentially receive a ratings upgrade. The upcoming opening of Wynn Al Marjan Island in the UAE is seen as a positive development that could add geographic diversity to the company’s portfolio.
In conclusion, while Wynn Resorts’ credit rating remains below investment grade, Moody’s positive outlook reflects confidence in the company’s ability to navigate the challenges ahead and capitalize on the opportunities for growth in key markets like Macau and the UAE. By maintaining financial discipline and focusing on liquidity, Wynn Resorts is positioning itself for a brighter future in the gaming industry.
