Mohegan to start reducing debt/EBITDA soon says Moody's

The U.S.-based Mohegan Tribal Gaming Authority, which controls casino operator Mohegan Gaming and Entertainment, will likely be able to reduce its debt-to-equity ratio (EBITDA) before interest, taxation, depreciation and amortization by the end of fiscal 2021, Moody's Investors Services Inc said.

However, the agency added that the parent company will likely still have a level of leverage to leave behind "a high level of financial risk." Mohegan Gaming is the promoter of a developing casino resort called Inspire Entertainment Resort in Korea.

Moody's added: "These risks are compounded by ongoing operational challenges and our expectations of continued revenue and cash flow pressures from coronavirus containment efforts, as well as a slow recovery to pre-coronavirus volumes."

In late March, news broke that Inspire Entertainment Resort, which has a foreigner-only casino in Incheon, could postpone the opening of the first phase by a year.

In late January, it was announced that Mohegan Gaming, which currently has its main operations in Connecticut in the U.S., was committed to establishing a casino resort in Nagasaki Prefecture, Japan, in cooperation with the Japanese unit of Hong Kong-listed Oshidori International Holdings Ltd.

"Caa1," the Mohegan Tribal Gaming Authority's corporate family credit rating, reflects the group's "highly leveraged, highly competitive earnings concentration and exposure to cyclical volatility in several properties," Moody's said in a review on Friday.

According to Moody's, debt in the "Caa" rating "is judged to be speculation about bad condition and is exposed to very high credit risk."

BY: 슬롯머신