Standard & Poor’s Ratings Services has assigned its ‘BBB-‘ rating to SkyCity Entertainment’s NZ$100 million ($64.8 million) seven-year bonds.
The unsecured, fixed-rate bonds, which will mature on September 28, 2022, will be used to pay down drawings on the company’s bank facilities.
“The ‘BBB-‘ issuer credit rating on SkyCity reflects the group’s solid market positions underpinned by long-term exclusive casino licenses in its key markets; good asset quality; and resilience to economic cycles,” the ratings company said.
Tempering these strengths are execution risks associated with major developments in
Auckland and Adelaide; earnings concentration in Auckland; and the risks of operating in a heavily regulated industry.
“We expect the group to proactively manage its financial risk profile in line with expectations for the rating during the peak of the development period.”