Fitch Ratings has revised its ratings outlook on Crown Resorts to negative from stable due to ongoing regulatory probes, but said it doesn’t think the operator will lose its license.
Fitch maintained the credit rating at BBB, but said it may downgrade the company were regulators to impose onerous conditions or fines. Under its base case scenario, Crown can absorb about A$800 million in fines and penalties while retaining a financial profile consistent with its rating.
The agency points out the hearings have revealed weaknesses in the company’s governance structure.
The world is bouncing back, or at least coming to grips with the fact that going forward not much will be the same as before. Commendably, this industry quickly understood the need to adapt to a new normal, and that the days of targeting the low hanging fruit of the VIP sector are gone.
Over the years, many of the answers have been remarkably prescient in their forecasts for the near-term direction of Asia’s gaming industry. However, we can safely say that no one came anywhere close to guessing what 2020 may have had in store.