Crown Resorts Limited maintained the more conservative financial profile currently. The resort should allow the company to better weather the expected slow start to business for its Crown Sydney project.
Crown Resorts Limited is spending nearly $1.5 billion to bring Crown Sydney to the harborside Barangaroo district. The company reported that the end of this year Crown Sydney will open. The hotel has 350 hotel rooms. Additionally, a VIP casino with a variety of 500 gaming tables offering baccarat, roulette and blackjack.
The six-star development will reportedly be born into a local casino landscape. It has recently been ravaged by coronavirus-related shuttering. But a deal the local government worked out with rival operator The Star Entertainment Group Limited in May is to prevent it from offering electronic gaming machines until at least 2041.
However, Crown Resorts Limited has positioned itself to ride out this expected start after showing a ‘commitment to maintaining its balance sheet strength’. Also, the new acquisition of over $700,000 in new debt facilities ‘to manage through the disruptions and to meet its obligations.’ Crown Limited’s ability to absorb the results of the shutdowns, continue funding the construction of Crown Sydney. It returns its leverage to within the guidelines for its rating within one year benefitted from the conservative financial profile.
Also, Crown Limited is allowed to start its Sydney casino. Because VIP demand remains subdued given limitations on international travel and the crisis in Australia for the next few of years.
Fitch Rating said that this strategy would be beneficial, although Crown Sydney’s expected coming reliance on foreign visitors may create a risk during the COVID-19 period.
Crown Sydney Official Page.