Moody's Investors Services said Wednesday that business prospects at Wynn Resorts Ltd. (WYNN) are improving, thanks to the casino operator's initial public offering on the Hong Kong Stock Exchange.
The ratings agency raised its outlook on the Las Vegas-based company to "stable" from "negative," following the $1.86 billion deal. It also cited better business conditions in the enclave of Macau, the only place in China where gambling is legal.
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A stable outlook means future ratings are unlikely to change anytime soon. Meanwhile, Moody's also maintained its non-investment grade rating on the company's debt, at "Ba3." About $1.63 billion of rated debt is affected.
Earlier this week, Fitch Ratings boosted its outlook of Wynn and its subsidiaries following the IPO.
This month's IPO, representing a 25 percent stake in Wynn's Macau operations, was Hong Kong's second-biggest of the year.
Wynn shares climbed $1.17, or 1.8 percent, to $67.17 in midday trading Wednesday.
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