Wynn Resorts Receives BB- Rating from Fitch Ratings

Wynn Resorts, a global leader in hospitality, entertainment, and gaming, has achieved a significant milestone with its first-time BB- rating from Fitch Ratings. This prestigious rating, along with a stable outlook, applies to the gaming company and its related entities and was announced on Tuesday.

Fitch Ratings, a leading provider of credit ratings and research for global capital markets, recognized Wynn’s strong portfolio of gaming assets and its recent performance, which indicates potential for near and long-term growth. The credit research company specifically highlighted Wynn’s success in strategic markets such as Macau and Las Vegas.

In addition to its strong performance, Fitch emphasized Wynn’s future growth opportunities, including upcoming investments in Macau that are expected to boost its revenue. With plans to invest $2.2 billion over the next decade, Wynn aims to enhance its offerings in Macau, potentially increasing its gross gaming revenue. Furthermore, the company has outlined improvements for its Las Vegas properties in the coming years, solidifying its position in the iconic city.

Looking ahead, Wynn’s ownership of a 40% stake in a resort development project in Ras Al Khaimah, United Arab Emirates, is anticipated to have a significant long-term impact on the company, according to Fitch Ratings.

Commenting on the rating, Fitch Ratings stated, “The ratings reflect the high-quality portfolio of its gaming assets, the expected improvement in Macau’s gaming market in terms of visitation and gaming activity that is expected to drive further improvement in credit metrics, strong results in Las Vegas, and robust liquidity that should fund near-term capital projects and could lead to further debt reduction.”

Despite challenges posed by the pandemic, Wynn’s performance in Las Vegas has remained strong. The company’s high reputation and quality properties have allowed it to attract affluent customers and maintain high prices without compromising occupancy levels. Fitch noted the potential impact of pent-up demand on gaming revenues in Las Vegas but highlighted the offsetting effect of an increase in convention customers, as well as the positive influence of sports events and the recent opening of The Sphere.

In Macau, Wynn’s gaming revenues have shown a strong recovery, leading to positive implications for the company’s credit rating. While visitation and gaming revenues have yet to surpass 2019 levels, Fitch anticipates further growth for Wynn in Macau and strong near-term results.

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