Fitch eyes Empire Resorts for downgrade

Fitch Ratings said it placed Empire Resorts, Inc.'s long-term issuer default rating of B and its BB-/RR2 senior secured notes on rating watch negative.

The agency said the rating watch incorporates the risk that Genting New York LLC (BBB-, also on negative watch) may not win a full-scale casino license in downstate New York, for which the bidding process is underway.

If Genting does not win the license, Fitch said it believes the New York market's strategic importance to the Genting group and incentives for Genting Bhd. (BBB/stable) to provide support would be weaker.

“This could lead to Empire's IDR being downgraded by more than one notch,” Fitch said in the release.

The agency said the rating watch also reflects decreased confidence in the company's ability to refinance its 2024 Holdco debt in lieu of parent support.

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