Wynn Resorts has received its first BB- rating from Fitch Ratings, a prominent credit rating agency known for its extensive research and analysis of global capital markets. The announcement of the rating and its stable outlook was made on Tuesday, applying to the gaming company and its related entities.
According to Fitch, Wynn currently possesses a strong portfolio of gaming assets, with recent performances indicating potential growth in the near and long term. The credit research company recognized the company’s strong performance in strategic markets such as Macau and Las Vegas.
Additionally, Fitch highlighted Wynn’s future growth drivers, including upcoming investments in Macau totaling $2.2 billion over the next decade. These investments are expected to enhance the company’s offerings and drive an increase in gross gaming revenue. Furthermore, Wynn has plans to improve its Las Vegas properties throughout this year and in 2025, further solidifying its position in Sin City.
The company’s project in the United Arab Emirates, in which Wynn holds a 40% ownership, is also expected to be a significant driver of future growth. The massive resort development in Ras Al Khaimah is anticipated to have a long-term positive impact on the company.
According to a statement released by Fitch Ratings, the high-quality portfolio of gaming assets, expected improvements in Macau’s gaming market, strong results in Las Vegas, and robust liquidity all contributed to the favorable rating.
In Las Vegas, Wynn’s strong performance has been notable, despite the lingering impact of the pandemic. The company’s reputation and quality properties have allowed it to attract affluent customers and charge higher prices without negatively impacting its occupancies. Fitch also mentioned that any potential declines in gaming revenues due to weakened pent-up demand could be offset by an increase in convention customers.
In Macau, Wynn’s gaming revenues have experienced a strong recovery, contributing to the positive impact on the company’s credit rating. While visitation and gaming revenues have yet to surpass 2019 levels, Fitch predicts further growth for Wynn in Macau in the near term.