Moody's rates Wynn Las Vegas notes Ba2

Moody's Investors Service said it assigned a Ba2 (LGD5) rating to Wynn Las Vegas, LLC's proposed $1.75 billion senior notes due 2025. The company is a wholly owned subsidiary of Wynn Resorts, Ltd., which has a Ba1 corporate family rating and a stable outlook.

Note proceeds will be used to refinance the company's $377 million 7 7/8% first mortgage notes due 2020 and $1.23 billion 7¾% first mortgage notes due 2020.

The agency said Wynn's Ba1 corporate family rating reflects the quality, popularity and favorable reputation of Wynn's casino properties and its strong financial profile, which will provide the company will an adequate buffer against gaming revenue declines in Macau. Net debt/EBITDA is about 3.0 times.

Key credit concerns include Moody's view that Wynn's diversification remains limited despite the fact that it is one of the largest U.S. gaming operators in terms of revenue. The company's revenues and cash flow are concentrated in only two gaming markets: Las Vegas and Macau.

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