Fitch said it downgraded the issuer’s default rating for Australian casino operator Crown Resorts from “BBB” to “BB-” and lowered the senior unsecured rating for financial institutions’ publishing stations. Both ratings remained “grade clock negative”.
The rating agency said the downgrading “reflects Crown’s worsening financial profile following the completion of the acquisition of new owner Blackstone Bidco, based on a more aggressive capital structure implemented to finance the deal, as disclosed in its March 2022 drafting booklet.”
“Pitch withdrew its rating as Crown decided to stop participating in the rating process,” the agency said, following the acquisition of companies linked to private investment firm Blackstone Inc. and Crown Resorts’ delisting on the Australian Exchange.
Fitch stated that Blackstone’s proposed “aggressive” structure “will raise A$5.4 billion in debt out of an estimated A$8 billion purchase price, and allow a new group of companies to raise an additional A$500 million under the Super Senior Revolving Credit Facility to finance business operations.”
The maintenance of the ‘rating clock negative’ position reflected Fitch’s view that Crown Resorts could be further downgraded following the completion of Blackstone’s review of the casino group’s future operations. 경마
However, the rating agency said it expects limited information to be released to enable a full evaluation of Crown’s business and financial profile once the review is completed, following Crown’s delisting on the Australian stock exchange and Blackstone’s intent to run a private company.
The Fitch ‘BB’ rating means “an increased vulnerability to default risk, especially if negative changes occur in business or economic conditions over time,” but the agency notes that “business or financial flexibility exists to support the services of financial commitments.”