The downgrade is a reflection of the high leverage ratio of Century Casinos, which is expected to exceed 7.0x Debt/EBITDA for the next 12 to 18 months. This high leverage is due to a stagnant operating performance and significant lease obligations to VICI Properties (NYSE:VICI) L.P., specifically for four properties in Alberta, Canada. These properties were part of a sale leaseback transaction executed in September 2023. Despite the capital obtained being directed towards growth capital expenditures, Moody’s anticipates the high leverage to persist.
Investing.com – Century Casinos ratings downgraded by Moody’s due to high leverage
Phil has a question:
What impact will Century’s stagnant operating performances have on slots revenues from Century Downs and Century Mile.
If Century’s operating performances at Century Downs and Century Mile remain stagnant or even worse decline how will that affect the projected budgets in the pipe dream fiction that Horse Racing Alberta refers to as its 2024 – 2026 Horse Racing Alberta Business Plan.
Time to take off the rose coloured glasses.
Phil M. Stockmen
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