Are Casino Queens' Days Numbered At Crown?, page-72

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27/11/20

03:34

Post #: 49179307
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Originally posted by dentist: ↑

Fitch Places Crown Resorts on Rating Watch Negative on Increased Regulatory Risks

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https://www.fitchratings.com/research/corporate-finance/fitch-places-crown-resorts-on-rating-watch-negative-on-increased-regulatory-risks-24-11-2020

Fitch Ratings - Sydney - 24 Nov 2020: Fitch Ratings has placed Crown Resorts Limited's 'BBB' Long-Term Issuer Default Rating (IDR) and senior unsecured rating on Rating Watch Negative (RWN) following the announcement that New South Wales' (NSW) Independent Liquor & Gaming Authority (ILGA) has delayed the opening of Crown's Sydney casino until February 2021.

The ILGA said on 18 November 2020 it has deferred its consideration of a number of applications that are required for Crown to commence gaming operations at its new Sydney property following the company's admission during its final submissions to the NSW inquiry that money laundering was likely to have occurred at its Melbourne and Perth casinos. The Victorian Commission for Gambling and Liquor Regulation subsequently issued a notice of demand to Crown to obtain the same information for review, while the West Australian Gaming and Wagering Commission said it will consider its position in relation to Crown Perth once the recommendations from the NSW inquiry are handed down next year.

The RWN reflects Fitch's opinion that these actions highlight an increased risk of severe regulatory action being taken by ILGA, including a loss of licence, and have heightened the potential for further regulatory action by the Victorian and Western Australian regulators that would have a significant impact on the company's business or financial profile, which would lead to Fitch downgrading Crown's ratings. Our previous Negative Outlook reflected that, under our base case, Crown would be able to absorb around AUD800 million in fines and penalties, enabling its financial profile to remain consistent with its rating.

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Previous Credit Rating by Fitch Thrown Out The Window...

CWN Now Junk Bond Status...And Financial Consequences That Go With It...

CWN Price at posting: $9.96 Sentiment: None Disclosure: Not Held
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0 Great analysis

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