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Financing package rated

Wednesday, April 7, 2004 | 10:43 a.m.

Standard & Poor's Ratings Services on Tuesday assigned preliminary junk ratings to Wynn Resort Ltd.'s recent $1 billion mixed-shelf registration, assigning its "CCC+" rating to the debt components of the offering and its "CCC" preferred stock rating to its securities component.

Both ratings indicate the company's holdings "make it extremely vulnerable to losses from credit defaults," S&P said.

At the same time, S&P affirmed its existing "B" corporate credit rating on Wynn Resorts.

"Ratings for Wynn Resorts reflect its high amount of consolidated debt; the execution risk in building, designing and operating a $2.4 billion property on the Las Vegas Strip; the risks associated with constructing and operating a casino in Macau; and the competitive market environment in both Las Vegas and Macau," S&P credit analyst Michael Scerbo said in a statement. "These factors are somewhat offset by current significant excess cash balances at the holding company level, no debt service requirements for a few years on its outstanding holding company debt, and an experienced and committed major shareholder."

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