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The ratings agency also said it has withdrawn its provisional (P)B1 senior secured rating to the proposed USD bonds to be issued by Imperial Pacific International (CNMI), LLC.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 IslandsMonday, Aug 07, 2017

Imperial Pacific Resort Hotel has announced the opening of DÁ Lounge, the hotel’s new cocktail lounge as the icon of the entire property.

Mainland China, Pacific IslandsSunday, Aug 06, 2017

The members of an online gambling gang were reportedly rounded up and returned to China from Fiji after Beijing sent a team to the island to investigate, according to media reports.

Pacific IslandsWednesday, Aug 02, 2017

Imperial Pacific International Holdings Ltd has announced amendments to its casino license agreement regarding timings for its initial gaming facility, as well as phase one and two integrated resorts.

Pacific IslandsMonday, Jul 24, 2017

Imperial Pacific International says it expects to complete the construction of its villas by January of next year, while 374 hotel rooms are expected to complete in August 2018.

Pacific IslandsWednesday, Jul 19, 2017

The CNMI Senate has formed a new committee to address gaming concerns on the island.

Pacific IslandsSunday, Jul 02, 2017

Imperial Pacific’s integrated casino resort in Garapan is set to open within the next two weeks.

Pacific IslandsThursday, Jun 29, 2017

Imperial Pacific International Holdings, operator of the Saipan casino resort, has announced new workforce rules banning any individuals who are not authorized to enter the construction site.