Mohegan Tribal Gaming Authority’s speculative-grade liquidity rating of ‘SGL-4’ reflects the casino group’s “weak liquidity,” says a note from Moody’s Investors Service Inc.
The institution said in a credit opinion memo: “The company has raised debt to fund a growing portfolio of unrestricted properties, including the development of Mohegan Inspire in Incheon, South Korea.”
Though Moody’s added: “Despite the high debt burden, Mohegan’s large and well-established casinos, located near major population centres, and its earnings diversification strategy – stemming from an expanding portfolio of properties – help mitigate credit risk.”
Moody’s said the authority’s long-term obligation rating was ‘Caa1’. Such ratings are “judged to be of poor standing and are subject to very high credit risk,” though at the more favourable end of that category, according to its glossary.
Aside from operations in the U.S. and Canada, the casino company, which trades as Mohegan Gaming & Entertainment, also runs the Mohegan Inspire 온라인카지노사이트 Entertainment Resort (pictured) – with a foreigner-only casino. The property at Incheon in South Korea, is close to Incheon International Airport, the country’s main air hub
The Mohegan group said at a recent investor event, that mass-market and premium-mass gaming table drop at Mohegan Inspire’s casino had nearly tripled since the February launch of gaming operations.
Moody’s observed in its Tuesday update, that the Mohegan group had about US$180 million of unrestricted cash along with US$170 million availability under its US$233.5-million revolver [credit facility] at June 30, 2024.”
But the institution noted: “In February 2023, Mohegan’s creditors extended the maturity of the revolver from April 2024 to November 2025, but reduced the revolver’s capacity to US$234 [million] from US$263 million effective April 12, 2024.”
Moody’s noted that the company had “large debt maturities in the next two years”, including its US$720.1 million Korean credit facility due in November 2025 and US$1.2-billion senior secured notes due in February 2026.
“In addition, Mohegan has another large maturity in 2027 when its US$502.5-million senior unsecured notes will mature,” said Moody’s analysts Thuy Nguyen and Luisa De Gaetano.
Though they also observed: “We expect Mohegan will remain in compliance with its various maintenance financial covenant requirements related to total leverage, secured leverage, and minimum fixed charge ratio.”