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.
Consolidation of the bases and advancement in adversity was the thrust of Macau Chief Executive’s policy address for 2021, though it gave little away when it came to the current pillar of the economy - the gaming industry.
Gaming suppliers, like all areas of the industry, have felt the pinch from the Covid-19 crisis, though their growing digital businesses have proved a bright spot and helped offset the impact of the crisis.
While nowhere in the world has escaped the economic fallout from the Covid-19 crisis, Macau has been hit harder than most, with forecasts for gross domestic product to shrink more than 50 percent this year.