The voluntary temporary suspension of NagaCorp’s casino operations will have a significant impact on its earnings in 2021, says Moody’s Investor Services, which expects revenue to reach only around 40% of 2019 levels this year.
In a note on Tuesday, Moody’s has affirmed the B1 corporate family rating of NagaCorp, whilst maintaining its outlook on all ratings as negative.
However, although the pandemic will likely delay NagaCorp’s earnings to 2022, Moody’s expects the company to have enough liquidity to handle its cash burn.
“The rating affirmation reflects our expectation that NagaCorp’s tap issuance will provide the company with sufficient liquidity to fund its cash burn over the next 18-24 months, should its casino operations remain suspended.”
Moody’s noted that the company also has the choice to delay planned spending on the construction of its integrated resort in Vladivostok, Russia as well as the expansion of its hotel complex in Phnom Penh if required without financial penalty.
In other news, workers at NagaCorp’s Cambodia casino has urged the government to stop the company’s plan to lay off a significant number of employees.
According to Nikkei, representatives of the Labor Rights Supported Union of Khmer Employees of NagaWorld delivered a petition with more than 2,000 signatures to the Labor Ministry on Tuesday, requesting officials to intervene.
The latest news article noted that around 600 workers were being laid off. An earlier news report put that number closer to 1,300 workers.