Moody’s rates Imperial Pacific bonds B1

Moody's Investors Service said it assigned a first-time provisional B2 corporate family rating to Imperial Pacific International Holdings Ltd.

The agency also said it assigned a provisional B1 senior secured rating to the proposed dollar-denominated bonds to be issued by Imperial Pacific International (CNMI), LLC.

The outlook is stable.

The bonds will be guaranteed by Imperial Pacific International Holdings, Moody’s said.

The proceeds from the proposed bonds issuance of up to $480 million will be placed in an account that will only be used to finance the development of phase I of the Saipan project, the agency explained.

The ratings reflect the key strengths of Imperial Pacific's casinos in Saipan, including its monopoly status in Saipan's gaming market, as well as the island's favorable tax regime for casinos and friendly visa policy for Chinese visitors, Moody’s said.

The ratings also consider the company's exposure to the high execution risks associated with the development of Grand Mariana, a new casino and hotel project, the agency said, and the short track record of Imperial Pacific and the island of Saipan in the gaming business.

The company is also exposed to the risks of cost overruns and delays in the completion of the project, Moody’s added.

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