Moody's affirms Galaxy Casino

Moody's Investors Service said it affirmed the B1 corporate family rating and senior unsecured rating of Galaxy Casino SA. The action follows news that the parent entity - Galaxy Entertainment Group Ltd. - would change ownership interests and issue additional equity.

The proposed issuance of ordinary shares will be predominantly used to strengthen the capital structure, including a material reduction in debt levels of the parent entity, Moody's said.

While the parent's debt levels will decrease as a result of the issuance, such an improvement will not have a direct effect on the credit fundamentals of Galaxy itself, the agency said. This is because Moody's said it does not factor in any support from the parent into Galaxy's ratings.

Galaxy's ratings continue to reflect the rapidly evolving Macau market place and the company's growing track record of operations in this market, Moody's said. The risks associated with the construction of additional gaming facilities also influence the rating, the agency added.

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