• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Fitch downgrades Universal Ent on liquidity risks

Jun 01, 2021 Newsdesk Japan, Latest News, Philippines, Top of the deck  


Fitch downgrades Universal Ent on liquidity risks

Fitch Ratings Inc has downgraded Universal Entertainment Corp’s long-term issuer default rating to ‘CCC+’ from ‘B’, on what it said were risks regarding the company’s liquidity, given the potential for “further deterioration” in the group’s casino business. ‘CCC’ levels indicate a substantial credit risk, with the probability of default.

A subsidiary of Universal Entertainment, which is a Japanese gaming conglomerate, operates the Okada Manila casino resort (pictured) in the Philippines.

In Monday’s note, the ratings agency said it was also downgrading Universal Entertainment’s outstanding U.S. dollar senior secured notes to ‘CCC+’ from ‘B’ with a recovery rating of ‘RR4′, meaning a “very weak” rating with an “average” recovery assessment.

“The downgrade reflects our view that unless the company’s free cash flow improves significantly in the second half of 2021 or additional funding is raised, Universal Entertainmentmay have insufficient liquidity to meet the repayment of US$118 million (about JPY14 billion) senior secured notes due in December 2021,” stated Fitch.

The institution said it believed “there is a risk of prolonged free cash flow weakness” amid the Covid-19 pandemic uncertainty, and the “risk of further deterioration” in both the group’s casino and the amusement equipment businesses.

It added: “Universal Entertainment is highly exposed to the pandemic as operator of the Okada Manila, the largest integrated casino resort in Manila’s Entertainment City, and in its Japanese amusement equipment business, which produces and sells pachinko and pachislot machines in Japan.”

Okada Manila reported gross gaming revenue of nearly PHP5.10 billion (US$1.05 billion) in the first quarter of 2021, down 41.0 percent from the prior-year period. The resort’s adjusted segmental earnings before interest, taxation, depreciation and amortisation (EBITDA) were PHP692 million in the opening quarter of 2021, down 35.3 percent from a year ago.

Fitch noted that the recovery in the casino business could be hampered by “travel restrictions, outbreaks and further lockdowns”.

“Failure to achieve a turnaround in operations could lead to further cash burn and deteriorating liquidity, and inhibit Universal Entertainment in securing external funding, leading to further stress on business and credit profiles,” stated the ratings agency.

The Japanese group is said to be looking at several options to shore up liquidity, including apotential listing of its Philippine-based casino business or a refinancing.

Universal Entertainment announced earlier this year a plan for stock-market listing in the United States of Okada Manila, via a special-purpose acquisition company.

In Monday’s memo, Fitch said “considerable uncertainty exists” over these options because Universal Entertainment is “vulnerable to pandemic-related disruptions.”


  • tweet
Related articles
  • Pagcor 2022 income up 66pct y-o-y, tops US$1bln
    Pagcor 2022 income up 66pct y-o-y, tops...

    Jan 31, 2023  

  • Okada Manila 4Q gaming revenue up 50pct y-o-y
    Okada Manila 4Q gaming revenue up 50pct...

    Jan 30, 2023  

More news
  • Macau CNY mass GGR maybe 60pct plus of CNY 2019: JPM
    Macau CNY mass GGR maybe 60pct plus of...

    Jan 31, 2023  

  • Junket boss Levo Chan heard okaying illicit bets: court
    Junket boss Levo Chan heard okaying...

    Jan 30, 2023  


Latest News

Macau CNY mass GGR maybe 60pct plus of CNY 2019: JPM

Macau CNY mass GGR maybe 60pct plus of CNY 2019: JPM

Jan 31, 2023  

Macau mass-market casino gross gaming revenue (GGR) for the recent Chinese New Year (CNY) holidays could have recovered to at least 60 percent of that for the 2019 break, when the festivities were in...
Read More
Pagcor 2022 income up 66pct y-o-y, tops US$1bln

Pagcor 2022 income up 66pct y-o-y, tops US$1bln

Jan 31, 2023  

Junket boss Levo Chan heard okaying illicit bets: court

Junket boss Levo Chan heard okaying illicit bets: court

Jan 30, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


US$1.08 billion

Total income for 2022 reported by the Philippine Amusement and Gaming Corp



Most Popular

  • Available Macau casino tables busy at tail of CNY holsAvailable Macau casino tables busy at tail of CNY hols January 27, 2023
  • Almost half million visitors to Macau for 7 days of CNY holsAlmost half million visitors to Macau for 7 days of CNY hols January 30, 2023
  • Macau visitor momentum kept for post CNY weekendMacau visitor momentum kept for post CNY weekend January 30, 2023
  • Junket boss Levo Chan heard okaying illicit bets: courtJunket boss Levo Chan heard okaying illicit bets: court January 30, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us