Wynn Resorts, the global hospitality, entertainment and gaming company, secured a first-time BB- rating from Fitch Ratings, the leading provider of credit ratings, commentary and research for global capital markets. Announcement about the rating and the stable outlook, applicable for the gaming company along with its related companies, came Tuesday.
Per the leading credit research company, Wynn currently holds a strong portfolio of gaming assets and its recent performance points to further near and long-term growth. Fitch acknowledged the strong performance of the gaming and entertainment company in strategic markets, including Macau and Las Vegas.
Besides strong performance, the provider of credit ratings highlighted Wynn’s future growth drivers such as upcoming investments that can boost its revenue in Macau. The company is set to invest some $2.2 billion over the next decade in Macau, strengthening its offering, a move that may boost its gross gaming revenue. On the other hand, Wynn also plans improvements for its Las Vegas properties throughout this year and in 2025, strengthening further its position in Sin City, Fitch confirmed.
Another strong future growth driver is expected to be the company’s project in the United Arab Emirates. Currently, Wynn holds 40% of the ownership of the project, a massive resort development in Ras Al Khaimah that is expected to have a resounding long-term positive impact on the company.
“The ratings reflect the high-quality portfolio of its gaming assets, the expected improvement in Macau’s gaming market in terms of visitation and gaming activity that is expected to drive further improvement in credit metrics, strong results in Las Vegas, and robust liquidity that should fund near-term capital projects and could lead to further debt reduction,“
reads a statement released by Fitch Ratings
The Company Performed Well in Macau, Las Vegas
According to Fitch, Wynn enjoyed a strong performance in Las Vegas, considering the residing impact of the pandemic. Its high reputation in combination with quality properties enabled the company to attract “a more affluent customer,” and charge higher prices without a negative impact on its occupancies, wrote Fitch.
Although speculations suggest that the pent-up demand will weaken, resulting in a decline in gaming revenues, the credit ratings company explained that this could be offset by an increase in the number of convention customers. Fitch did acknowledge the positive impact of sports events and the recent opening of The Sphere on Wynn’s Las Vegas properties.
Across the ocean, in Macau, Fitch acknowledged the strong recovery of Wynn’s gaming revenues. This recovery also impacted positively on the company’s credit rating. Considering that visitation and gaming revenues are still yet to surpass the 2019 levels, Fitch predicted further growth for Wynn in Macau and strong results in the near term.