S&P keeps Wynn Resorts on positive watch

Standard & Poor's said its ratings on Wynn Resorts Ltd. and its wholly owned subsidiary Wynn Las Vegas LLC, including their B+ corporate credit ratings, remain on CreditWatch with positive implications.

The ratings were initially placed on CreditWatch on March 6, following the company's announcement that it had entered into an agreement to sell a subconcession in the Macau Special Administrative Region of the People's Republic of China for $900 million to Publishing and Broadcasting Ltd. (A-/stable/A-2), the agency said.

While a definitive time frame as to the closing of the sale remains uncertain, S&P said it has determined that if the sale is completed as outlined, the ratings on Wynn Resorts and Wynn Las Vegas would be raised one notch to BB- and it is expected that the outlook would be stable.

The upgrade would primarily reflect the favorable impact the cash proceeds from the sale would have on the company's consolidated financial profile and liquidity situation at a time when it is pursuing multiple capital spending initiatives, specifically its development of Wynn Macau and Encore at Wynn Las Vegas, the agency added.

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