Wynn Resorts Credit Outlook Shifts to Positive as Moody's Cites Strong Performance
Moody's Investors Service has upgraded Wynn Resorts Finance's credit outlook from "stable" to "positive" while maintaining its "B1" debt rating. This improvement reflects several key factors in the company's performance and financial management.
Aerial shot of Las Vegas casinos
Key factors driving the upgrade include:
- Strong recovery in Macau gaming market
- Robust performance at Las Vegas properties and Encore Boston Harbor
- Projected leverage improvement to mid-5x debt/EBITDA range for 2024
- Successful debt reduction of nearly $1.2 billion
- Strong cash position of $1.34 billion (as of Q3)
The company's current financial position shows:
- Total debt: $11.79 billion
- Cash on hand: $1.34 billion
- Consistent EBITDA growth
- Maintained strong liquidity
Future growth prospects include:
- Expected continued EBITDA improvement in Macau
- Opening of Wynn Al Marjan Island in UAE (early 2027)
- Potential geographic diversification benefits from UAE expansion
For a future ratings upgrade, Moody's indicates Wynn needs to:
- Maintain debt/EBITDA well below 6x
- Continue showing strong positive free cash flow
- Sustain good liquidity levels
- Demonstrate continued revenue growth
The positive outlook reflects confidence in Wynn's premium property portfolio, successful debt management, and strategic expansion plans, particularly in the UAE market where it will enjoy a multi-year monopoly position.
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