Moody's Investors Services Inc said in a note on Wednesday that the temporary suspension of operations at Cambodian casino resort NagaWorld after 11 employees tested positive for COVID-19 was "credit negative" for Hong Kong-listed promoter Nagakov Inc.
"Longer business closures could delay earnings recovery and weigh on Naga Corp's credit quality," a note from Junling Tan, Yu Sheng Tay and Vikas Halan said.
Moody's currently considers credit products issued by Nagakov as "B1," a non-investment grade, and gives a "negative" outlook for Nagakov.
"Naga World will see footfall decline due to social distancing and density control measures as well as health and safety concerns when operations resume," the Moody's team said
At Nagaworld (pictured) in Cambodia's capital Phnom Penh, 11 employees were shut down "immediately and voluntarily" after testing positive for COVID-19, the resort's promoter said in a filing with the Hong Kong Stock Exchange on Monday.
Neither the date when the suspension began nor the date when operations could resume were mentioned in the filing.
Moody's said it nevertheless expected Nagakov's leverage, as measured by its debt/earnings formula (EBITDA) before interest, taxation, depreciation and amortization, to be less than 1x in 2021-2022, with the agency's downgrade trigger point at 2.5x EBITDA.
This means Nagakov has "some capacity to withstand temporary earnings deterioration," the rating company said.
Moody's added that the casino company has "very good liquidity" over the next 12 months.
The agency noted that as of Sept. 30, the company had $478 million in cash and deposits. "With approximately $500 million in operating cash flow, we expect the company to meet cash needs, including expansionary capital expenditures and $300 million in senior unsecured bond repayments due in May 2021," the analysts wrote. 슬롯사이트
Moody's also predicted that "more than $200 million in cash surplus estimates will be sufficient to cover more than 18 months of cash incineration estimates."
![Moody's Investors Services Inc said in a note on Wednesday that the temporary suspension of operations at Cambodian casino resort NagaWorld after 11 employees tested positive for COVID-19 was "credit negative" for Hong Kong-listed promoter Nagakov Inc.
"Longer business closures could delay earnings recovery and weigh on Naga Corp's credit quality," a note from Junling Tan, Yu Sheng Tay and Vikas Halan said.
Moody's currently considers credit products issued by Nagakov as "B1," a non-investment grade, and gives a "negative" outlook for Nagakov.
"Naga World will see footfall decline due to social distancing and density control measures as well as health and safety concerns when operations resume," the Moody's team said
At Nagaworld (pictured) in Cambodia's capital Phnom Penh, 11 employees were shut down "immediately and voluntarily" after testing positive for COVID-19, the resort's promoter said in a filing with the Hong Kong Stock Exchange on Monday.
Neither the date when the suspension began nor the date when operations could resume were mentioned in the filing.
Moody's said it nevertheless expected Nagakov's leverage, as measured by its debt/earnings formula (EBITDA) before interest, taxation, depreciation and amortization, to be less than 1x in 2021-2022, with the agency's downgrade trigger point at 2.5x EBITDA.
This means Nagakov has "some capacity to withstand temporary earnings deterioration," the rating company said.
Moody's added that the casino company has "very good liquidity" over the next 12 months.
The agency noted that as of Sept. 30, the company had $478 million in cash and deposits. "With approximately $500 million in operating cash flow, we expect the company to meet cash needs, including expansionary capital expenditures and $300 million in senior unsecured bond repayments due in May 2021," the analysts wrote. [url=https://www.bsc.news/post/2024-safety-slotsite-rankings-free-online-slot-site-recommendations-top15]슬롯사이트[/url]
Moody's also predicted that "more than $200 million in cash surplus estimates will be sufficient to cover more than 18 months of cash incineration estimates."](https://www.geogebra.org/resource/sayqpker/3b73XmWtm3hlEcca/material-sayqpker.png)