S&P puts Wynn Resorts on watch

S&P said it placed all its ratings for Wynn Resorts Ltd. and its subsidiaries on CreditWatch with negative implications.

The Wuhan coronavirus outbreak hurt the Macau gaming market during the Spring Festival’s Golden Week. The agency believes visitation will remain depressed until the virus is contained.

“Wynn Resorts derives about 70% of its property-level EBITDA from the Macau gaming market and we expect that the severe decline in visitation to the market during the Lunar New Year will reduce the company's cash flow for the first quarter and possibly longer. Therefore, we believe it's likely that Wynn's leverage will increase above 5x, at least temporarily, as long as the outbreak continues to affect the Macau gaming market,” S&P said in a press release.

In resolving the placement, S&P said it monitor the efforts to contain the virus and its effects on Macau’s visitation and gaming revenue.

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