Moody's: Galaxy Casino unchanged

Moody's Investors Service said it does not expect any immediate impact on Galaxy Casino SA's B3 corporate family and senior unsecured debt ratings.

The outlook remains negative.

This follows the company's plans to redeem all the outstanding $350 million bonds due 2012, plus accrued and unpaid interests. The redemption will be funded by internal reserves and new borrowings, including a HK$9 billion club loan under arrangement, Moody's said.

While the bond redemption will address Galaxy's near-term refinancing needs and lengthen its debt maturity profile, increased borrowing to fund the enlarged capital expenditure will continue to pressure the company's financial metrics, Moody's said, and positions the ratings at the low B level.

Such a situation is unlikely to significantly improve, at least until Galaxy Macau Resort begins operations and starts to generate EBITDA, the agency said.

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