Naga Corp Ltd's credit rating "B1" reflects the "dominant status" of casino resort NagaWorld (pictured) in Phnom Penh, Cambodia, Moody's Investors Service updated on Wednesday.
The rating also includes expectations that "pandemic-related restrictions will be further eased given Nagakov's 2022 recovery in operating performance following the reopening of casinos in September 2021 and Cambodia's increased vaccination coverage."
Hong Kong-listed Nagakov's rating is still superior to Cambodia's national rating of "B2," according to Moody's.
"Based on our assessment that the company is unlikely to be affected if Cambodia's economic fundamentals weaken, Naga Corp's rating is one notch above the Cambodian national rating," the agency said.
Nagakov, who has a monopoly on casino operations in Phnom Penh, added in Cambodia that he is "somewhat insulated from the domestic situation because he generates most of his revenue from tourists and does not rely on local banks or capital markets for funds."
Nevertheless, Moody's rates its outlook on Nagakov as "negative" compared with a "stable" rating on the host country's credit outlook.
"Nagakov's rating is limited by its single-site operations, as well as by its political risk exposure and evolving regulatory framework in Cambodia," wrote Moody's analysis team Sweta Patodia, Jacinta Poh, and Vikas Halan.
Earlier this month, Nagakov reported an annual loss of $147 million for 2021, compared with a profit of $102.3 million a year earlier.
Naga World Casino was closed from early March to September 15 last year due to COVID-19 measures in Cambodia.
Naga Corp said in its full-year results that it had as much as $125.1 million in cash and deposits as of Dec. 31.
The group added that after repaying its senior bonds in 2021 in full at $300 million plus interest, the company "has no debt obligation until July 2024.
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