Cambodia-based hotel and gaming operator NagaCorp was downgraded to B from B+ by S&P. The rating agency noted that NagaCorp faces refinancing risk for a $472mn bond due July 2024, while adding that it “faces a deteriorating capital structure”. NagaCorp is seeking to complete its Naga3 casino and thus need to refinance itself whilst at the same time trying to conserve cash. For instance it has it cut down annual capex to about $160mn in 2020 and about $150mn in 2021 vs. expectations of $250-300mn. Also in 2022, its capex was about $128mn. While S&P expects NagaCorp to try accumulating cash and seeing an EBITDA recovery, its liquidity and refinancing pressures continue to weight on its outlook.

NagaCorp’s 7.95% 2024s have been trending lower since mid-February, down 3% since then to current levels of 93.7, yielding 13.3%

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