Casino operator Wynn Macau Ltd, and its parent Wynn Resorts Ltd, have had their issuer default ratings affirmed at ‘BB-‘, with a ‘stable’ outlook, by Fitch Ratings Inc.
Fitch stated it expected the Wynn group’s Macau operations “to grow marginally” in 2025 to 2028.
“A weaker Chinese economy, a decline in the value of the Chinese currency… relative to the Macau pataca – which is fixed to the U.S. dollar – and potential tariffs” on Chinese exports, “are likely,” said the rating agency in a Tuesday update.
Though it added regarding the Macau business: “This will be offset by continued visitation growth from new amenities, expansion projects throughout Macau and increased visas” for Macau visits issued by the mainland authorities “from certain Chinese provinces”.
The Wynn parent runs casinos in Las Vegas, Nevada, and Boston, Massachusetts, in the United States. Wynn Macau Ltd operates Wynn Macau (pictured) downtown, and Wynn Palace in Cotai.
In November, Wynn Macau Ltd said to expected to complete the rollout of so-called ‘smart tables’ at its two Macau properties by Chinese New Year, which this time falls on January 29.
Last week, China’s National Immigration Administration said it had observed a 26.1-percent year-on-year increase in the number of Macau-bound visitors from the neighbouring mainland city of Zhuhai since January 1, coinciding with mainland exit-visa easing measures for Zhuhai residents, that came into effect from that date.
Fitch said in its latest note that the Wynn group’s ratings “reflect average diversification, despite operating in two of the world’s largest gaming markets”.
It added: “The capital needed for current and potential projects could affect the pace of more meaningful credit improvement.”
Fitch stated the Wynn group had an “improving credit profile”. It expects leverage in relation to earnings before interest, taxation, depreciation, amortisation and rent (EBITDAR) to improve via “EBITDA growth and debt reduction”.
The institution stated: “We forecast positive free cash flow over 2025 to 2028. Liquidity is robust, which includes US$2.4 billion in cash, US$735 million of availability in the Wynn Resorts Finance LLC revolver, and US$354 million under the Wynn Macau Ltd revolver.”
Fitch forecasts free cash flow margins at 10 percent to 11 percent, which it said “should enable Wynn to meet debt obligations and potential capital needs for development projects”.
The Wynn parent is 40-percent equity investor in a circa US$5.1-billion project in Ras Al Khaimah in the United Arab Emirates. Wynn Al Marjan Island, is slated for a first-quarter 2027 opening, according to a November update.
Fitch observed: “Rating strengths include a high-quality portfolio of gaming assets, ongoing improvements in Macau’s market, top-tier performance in Las Vegas, and robust liquidity to fund near-term capital projects and further debt reduction.”
The institution further noted that the stable outlook reflected “strong growth prospects in the Macau market, Wynn’s strong market position in the Las Vegas market, and robust liquidity”.
Wynn Resorts recently announced it would acquire Crown London (Aspinalls), a small, members-only casino in the United Kingdom. The value of the deal was not disclosed.
