Moody's Upgrades Wynn Resorts Finance Outlook to Positive on Strong Performance
Moody's Investors Service upgraded Wynn Resorts Finance's credit outlook from "stable" to "positive" while maintaining its "B1" rating. This change reflects significant improvements in the company's financial performance and debt management strategy.
Key factors driving the upgrade include:
- Strong recovery in Macau gaming market
- Robust performance at Las Vegas properties and Encore Boston Harbor
- Projected leverage improvement to mid-5x debt/EBITDA range for 2024
- Recent debt reduction of nearly $1.2 billion
- Healthy liquidity position with $1.34 billion cash on hand
Aerial shot of Las Vegas casinos
Moody's cited Wynn's high-quality resort properties and favorable reputation as key distinguishing factors. The company's current portfolio includes two Macau integrated resorts, Wynn and Encore Las Vegas, and Encore Boston Harbor.
Future growth prospects include:
- Expected continued EBITDA improvement in Macau
- Ongoing revenue growth across properties
- Opening of Wynn Al Marjan Island in UAE by early 2027
- Potential monopoly position in the emerging UAE gaming market
For a potential ratings upgrade, Wynn needs to:
- Maintain debt/EBITDA ratio well below 6x
- Sustain strong liquidity
- Generate consistent positive free cash flow
- Continue revenue growth
Current financial position shows $11.79 billion in debt as of Q3 2024, with ongoing efforts to reduce this burden through strategic debt management and operational improvements.