Fitch upgrades view of Wynn Resorts
Fitch Ratings revised its outlook for Wynn Resorts on Monday to positive from stable after the company’s initial public offering on the Hong Kong Stock Exchange last week.
Wynn, which operates Wynn Las Vegas and Encore on the Strip, Wynn Macau, and is opening a second Macau casino next Spring, raised net proceeds of roughly $1.87 billion through the IPO, which included a $244 million over-allotment that was fully exercised.
Fitch’s upgrade also recognized an improved operating outlook in Macau after the Beijing government relaxed travel restrictions imposed on Mainland Chinese residents
“Although Wynn’s strong liquidity profile and substantial cash balance provides resources for meaningful debt reduction, the company may instead choose to preserve cash to invest in potential growth opportunities,” Fitch analyst Michael Paladino wrote in a report.
Fitch could adjust its ratings on Wynn again because the company could be impacted, positively or negatively, by several opportunities.
Wynn is exploring a potential investment in a development on Macau’s Cotai Strip in which the size, scope, and timing have yet to be determined.
Also, the company is awaiting a decision on its bid to operate a casino at the Aqueduct Racetrack in New York.
Paladino said it was unclear how the company Strip holdings will be affected by the opening of CityCenter in December.