Moody's cuts Galaxy Casino view to negative

Moody's Investors Service said it changed to negative from stable the outlook for the B1 corporate family rating and senior unsecured rating of Galaxy Casino SA.

The outlook change has been prompted by Galaxy's weaker than expected results for the first half of 2008 with revenue lowering 18% year-over-year and EBITDA margin dropping to 5% compared with 10.6% in 2007, Moody's said.

This has come about largely because of the underperformance of city clubs, lower hold rates at StarWorld and intense market competition resulting in increased commissions to junket operators, the agency said.

The lower operating performance has weakened Galaxy's key credit metrics, including debt/EBITDA and EBITDA interest coverage, to the extent that they may not support the company's B1 rating profile in the near term, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.