Moody’s mulls potential Imperial Pacific CFR downgrade

Imperial Pacific International Holdings Ltd., the operator of a casino in Saipan, may see a downgrade in its credit rating at Moody’s Investors Service.

The ratings agency said it was concerned with the lack of funding for its project to build a new resort on the island.

"The review for downgrade reflects our concerns over Imperial Pacific's lack of funding to complete its Grand Marina project due to a delay in the issuance of the company's proposed bonds," says Kaven Tsang, a Moody's vice president and senior credit officer.

"The delay in the issuance could also trigger the risks of cost overruns and a potential termination of the company's gaming license," added Tsang.

"The former concern will potentially result in more debt funding and the company's debt leverage could then exceed the original budget."

The ratings agency also said it has withdrawn its provisional (P)B1 senior secured rating to the proposed USD bonds to be issued by Imperial Pacific International (CNMI), LLC. as they had not been issued as planned.

As the investment is funded mainly by the proposed bonds, the delay in the bond’s issuance have meant major shareholders have been providing interim shareholder loans to keep construction going.

However, Moody said it was a temporary solution and falls short of the amount to complete the project.

More news from this jurisdiction

Pacific IslandsWednesday, Jan 11, 2017

Fitch Ratings has downgraded its rating for Hong Kong-listed Imperial Pacific International Holdings Limited, after concerns it has still not yet secured sufficient long-term funding for the construction of its casino and resort.

Pacific IslandsThursday, Jan 05, 2017

Saipan casino operator Imperial Pacific International Holdings has seemingly pushed back the opening of its new casino resort to the first quarter of 2017, deferring its earlier planned CNY opening.

Pacific IslandsTuesday, Jan 03, 2017

Imperial Pacific International Holdings has posted US$32.4 billion in unaudited VIP table games rolling chip turnover for the full-year 2016, according to the company’s filing to the Hong Kong Stock Exchange.

Pacific IslandsTuesday, Dec 27, 2016

A bond offering that Imperial Pacific was planning to use to fund construction of its Saipan casino has been put on hold, according to sources.

Pacific IslandsMonday, Dec 19, 2016

Saipan’s Labor Secretary Thomas E. Perez has requested for the federal court to issue a warrant to inspect the construction site of Imperial Pacific Resort in Garapan after an Occupational Safety and Health Administration was denied entry, Saipan Tribune reports.

Pacific IslandsMonday, Dec 05, 2016

Imperial Pacific’s temporary casino in Saipan raked in US$1.7 billion in VIP rolling chip for the month of November, according to its filing to the Hong Kong Stock Exchange.

Pacific IslandsThursday, Nov 24, 2016

Commonwealth Casino Commission officials have praised the efforts made by Imperial Pacific in hiring and training the local workforce in line with its employment plan and federal requirements.