S&P lowers Wynn Resorts

S&P said it downgraded Wynn Resorts Ltd. and its subsidiaries to B+ from BB-. The agency also lowered all the issue-level ratings a notch and removed all the ratings from CreditWatch where they were placed on Feb. 3, 2020, with negative implications.

“Wynn's leverage will remain very high in 2021 and potentially improve to 6.5x-7x in 2022 due to a slow recovery in gaming revenue in Macau. China's response to the Covid-19 delta variant has introduced prolonged uncertainty into the recovery trajectory from the pandemic. A recent uptick in cases in China and Macau and the government's zero-tolerance virus policy led to swift restrictions on travel, hampering Macau's recovery,” the agency said in a press release.

S&P said it now sees Macau's 2022 gross gaming revenue only improving to 60%-70% of 2019 levels before fully recovering in 2023 at the earliest.

The outlook is negative.

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