S&P cuts Galaxy Casino

Standard & Poor's said it revised the outlook on Galaxy Casino SA to stable from negative.

The agency also said it affirmed its B long-term corporate credit rating.

The outlook revision reflects an expectation that Galaxy Casino will open its integrated casino resort, Galaxy Macau, on budget within the first half of 2011.

The opening would significantly reduce the company's cost overrun risk, while construction risk will be minimal, the agency said.

The company's much improved operating performance and cash flow generation from its established casino at StarWorld Hotel further support the outlook revision, S&P said.

The opening of Galaxy Macau would reduce Galaxy Casino's reliance on a single property and its concentration in the rolling-chip or "VIP" market, the agency said.

The ratings also consider the intense competition in the market, S&P said, and its dependency on the Chinese market for the bulk of its visitors.

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