VICI Properties has achieved investment-grade status across all three major rating agencies following Moody's upgrade to "Baa3" from "Ba1" with a stable outlook. This milestone marks an important development for the casino landlord, which owns properties like Caesars Palace.

The upgrade benefits VICI in several ways:

• Lower borrowing costs for future financing
• Improved access to capital markets
• Enhanced ability to fund strategic acquisitions
• Strengthened overall financial position

VICI's financial metrics demonstrate solid performance:

• Fixed charge coverage of 4.5x
• Net Debt/EBITDA ratio improved to 4.7x (as of September 30, 2024)
• Two increases to 2024 adjusted funds from operations (AFFO) guidance

CFO David Kieske noted: "We have used each transformational transaction along the way to improve our balance sheet and to best position ourselves for credit rating improvements."

Key factors supporting the upgrade include:

• Dominant market position
• Resilient operating cash flow
• Strong liquidity
• Disciplined financial policy

However, Moody's highlighted tenant concentration as a significant challenge:

• Caesars Entertainment: 39% of annual cash rent
• MGM Resorts International: 35% of annual cash rent

To address this, VICI has shown interest in diversifying beyond Las Vegas casinos, pursuing acquisitions in other locations and non-gaming leisure properties across the United States.

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