Moody’s Ratings has adjusted its outlook on three Wynn group entities, including Wynn Macau Ltd, the Macau casino operating unit, from ‘positive’ to ‘stable’.
The other units given that assessment are Wynn Resorts Finance LLC and Wynn Las Vegas LLC.
The stable outlooks reflect the fact that the Wynn group “has not reduced leverage to well below 6 times,” stated Moody’s in a Thursday note.
The institution added: “While Wynn’s performance has improved since 2025, leverage still remains elevated as compared to our prior expectations.”
Moody’s nonetheless affirmed the ‘B1’ corporate family credit rating of Wynn Resorts Finance, as well as Wynn Macau Ltd’s and Wynn Las Vegas LLC’s respective ‘B1’ senior unsecured notes ratings.
A ‘B1’ rating is “speculative grade”, with “high credit risk”, per Moody’s definitions.
Moody’s stated: “The affirmation and stable outlook also incorporate our view that the company will maintain very good liquidity, with ample cash balances and sizeable revolver availability.”
The institution added: “The stable outlook reflects our expectation that Wynn will sustain debt/EBITDA [earnings before interest, taxation, depreciation and amortisation] near 6.0 times.”
In support of its assessment on the Wynn group’s liquidity, Moody’s mentioned its “sizable cash balances and ample undrawn revolver capacity”.
The institution noted that, as of March 31, the group had unrestricted cash and cash equivalents of US$1.2 billion on a consolidated basis – not including US$608 million of short-term investments – with US$851 million in Macau.
Moody’s mentioned the Wynn group maintains two revolving credit facilities: a US$2.5-billion unsecured facility in Macau, with US$1.35 billion of available capacity, due to mature in 2028; and an undrawn US$1.25-billion secured revolver at Wynn Resorts Finance that matures in 2030.
UAE, further projects
Wynn Macau Ltd is an approximately 72-percent owned subsidiary of Wynn Resorts Finance, which in turn is a wholly-owned subsidiary of Wynn Resorts Ltd, which is not rated by Moody’s.
The Macau unit operates Wynn Macau on the city’s peninsula, and Wynn Palace in the Cotai district.
In the United States, the Wynn group runs Wynn Las Vegas, in Las Vegas, Nevada, and Encore Boston Harbor in Massachusetts.
The group is also developing Wynn Al Marjan Island in Ras Al Khaimah in the United Arab Emirates (UAE). Last month, management stated the project was facing a ‘modest delay’ amid the Iran-U.S. conflict.
Moody’s said in general commentary on the Wynn group’s credit outlook that its ‘B1’ corporate family rating “reflects the quality, popularity and favourable reputation of the company’s resort properties – a factor that distinguishes Wynn from other gaming operators.”
It also stated the group’s “successful track record of building large, high quality integrated resorts… should bode well for the company’s latest project being constructed in the UAE.”
Moody’s added the ratings “also reflect that Wynn’s Macau operations have recovered significantly” in the post-pandemic period, “contributing to improvement in the company’s financial leverage.”
The Wynn group’s good liquidity and “relatively low cost of debt capital” also supported the ratings.
Nonetheless, Moody’s observed that “key credit concerns” included the casino group’s “limited diversification, despite being one of the largest U.S. gaming operators in terms of revenue, and exposure to reductions in cyclical discretionary consumer and business spending”.
The group’s revenue and cash flow remain “heavily concentrated in the Macau and Las Vegas gaming markets”.
Though Moody’s added: “We expect that Wynn will pursue other large resort development opportunities around the world, following the opening of its project in the UAE. As a result, the company’s leverage will increase during periods when it is developing new projects.”
