Despite a US$200 million bond offering, Cambodian integrated resort NagaWorld received a negative outlook. The revenue only reached 40% of 2019 levels in 2021 due to the facility’s ongoing closure.
“The negative outlook reflects our expectation that NagaCorp’s earnings and credit metrics will remain weak in 2021. The pace of recovery will remain uncertain as of now,” said Moody’s Vice President and Credit Officer Jacintha Poh.
“Even if the current suspension does not last longer than three and a half months, the company’s revenue in 2021 will be roughly 40% of its revenue before the pandemic in 2019.”
“The pandemic might push NagaCorp’s earnings recovery into 2022. But Moody’s expects the company to have enough liquidity to cover its cash burn. It includes operating expenses, interest payments, and maintenance capital spending.”