The temporary suspension of business at Cambodian casino resort NagaWorld, after 11 staff tested positive for Covid-19, is a “credit negative” for its Hong Kong-listed promoter NagaCorp Ltd, said Moody’s Investors Service Inc, in a Wednesday note.
Any “prolonged closure of operations could derail earnings recovery and weigh on NagaCorp’s credit quality,” said the memo from Junling Tan, Yu Sheng Tay and Vikas Halan.
Moody’s currently considers credit instruments issued by NagaCorp as ‘B1’ – a non-investment grade – with, in NagaCorp’s case, a ‘negative’ outlook.
The Moody’s team stated: “NagaWorld will experience a decline in foot fall because of social distancing and density control measures – as well as health and safety concerns – when the operations resume.”
GGRAsia – Fitch says LVS Nevada sale slight negative, Moody s keener
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GGRAsia – Fitch says LVS Nevada sale slight negative, Moody s keener
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Pimco, Emso Detect Default Risk Mispricing in Pemex’s Bonds
Bloomberg 2/19/2021 Justin Villamil and Amy Stillman
(Bloomberg) In financial markets awash with so much cash that junk bonds can yield less than 2%, the state-owned oil giant Petroleos Mexicanos is a jarring outlier.
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At 5.4%, the yield on the company’s benchmark bonds is not only well above that of similarly rated debt, it’s also almost four percentage points higher than the rate investors demand to buy Mexican government bonds. That gap known as the sovereign to quasi-sovereign spread is the biggest of its kind in the world, and the message it sends is crystal-clear: Pemex’s financial woes are so severe that investors have serious doubts about whether the government will bail it out when needed.