Moody’s views Century Casinos negatively

Moody’s Ratings said it changed its outlook for Century Casinos, Inc. to negative from stable and affirmed its ratings, including the Ba3 senior secured first-lien revolver rating and B3 senior secured first-lien term loan rating.

The negative outlook reflects Century Casinos' very high leverage and an expectation that debt/EBITDA will cling at over 7x over the next 12 to 18 months.

“The increase in leverage is driven by its large lease obligation to VICI Properties LP (VICI), which includes four properties in Alberta, Canada for which it executed a sale-leaseback transaction completed in September 2023. Additionally, Century Casinos' development projects pose risk that leverage remains elevated for longer, with large amounts of planned capital spending including The Riverview hotel at Cape Girardeau, Missouri which is connected to the existing casino,” Moody’s said in a press release.

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