Moody’s Ratings expects the earnings of Hong Kong-listed Cambodian casino operator NagaCorp Ltd “to moderate over the next 12 to 18 months,” amid uncertain economic conditions.
“The extent of the tariffs imposed by the U.S. administration on Cambodia remains uncertain, but will weigh on economic growth, as well as dampen business confidence and consumer sentiment,” stated the rating agency in a Wednesday memo.
“Nonetheless, the company has a low debt burden and sufficient capacity within its credit metrics to absorb weaker earnings,” it added.
Cambodia was hit with one of the highest tariff rates by the U.S. administration, at 49 percent. The higher tariff was subsequently paused for 90 days, with most countries now facing a 10-percent “baseline” tariff.
NagaCorp is the operator of NagaWorld (pictured), a casino resort monopoly in the Cambodian capital Phnom Penh.
In June last year, Moody’s affirmed the ‘B3’ corporate family rating of NagaCorp. At the time, the rating agency changed NagaCorp’s outlook to ‘stable’, from negative.
Moody’s Wednesday note followed a periodic review of the ratings of NagaCorp, but was not an announcement of a credit rating action.
The memo “is not an indication of whether or not a credit rating action is likely in the near future,” added the institution.
In its update, Moody’s said NagaCorp’s rating reflected “the dominant position of NagaWorld,” supported by the “country’s low labor costs and favourable gaming tax rates”.
“These factors support a competitive cost structure for the company,” it added.
Nonetheless, the casino firm’s rating “remains constrained by the company’s single-site operations, its exposure to political risk and the evolving regulatory framework in Cambodia, the uncertainty surrounding the capital spending needs of its expansion project, and its limited ability to access external financing,” said the rating agency.
It added: “We expect the company to maintain adequate liquidity while executing its Naga 3 expansion project.”
Last year, NagaCorp said it was likely to reduce the cost and scale of Naga 3.
NagaCorp reported a net profit of US$109.6 million for full-year 2024, on revenue that rose 5.5 percent year-on-year, to US$562.5 million.
Earlier this month, the casino firm reported a 17.7-percent rise in gross gaming revenue (GGR) for the first three months of 2025, reaching nearly US$171.2 million.
