Moody's affirms Galaxy bonds

Moody's Investors Service said it affirmed the provisional B1 senior unsecured bond rating assigned to Galaxy Entertainment Finance Co. Ltd.'s proposed bond issuance, which is guaranteed by Galaxy Casino SA.

At the same time, Moody's said it affirmed Galaxy's provisional B1 corporate family rating. The outlook is stable.

The agency said The affirmation follows the company's decision to increase the size of the bond from $500 million to $600 million, adding it believes that the increased issuance will provide some relief to the company's constrained liquidity profile based on the expectation that the additional $ 100 million in bond proceeds will be held by the company as a liquidity reserve.

Moody's noted the increased debt level will adversely impact leverage metrics and Galaxy's corresponding coverage metrics when considered on a gross basis.

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