Fitch Optimistic about Wynn Resorts' Macau Recovery

Fitch Ratings recently released a report highlighting Macau's robust recovery from the Covid-19 pandemic, signaling encouraging prospects for Wynn Resorts. The pandemic dealt a severe blow to Macau's gaming industry, crippling it with stringent restrictions. However, the removal of travel constraints in early 2023 sparked a remarkable resurgence in the sector.

Wynn Resorts witnessed a remarkable performance in Macau, with its operations accounting for a substantial portion of the market share. Despite challenges, Wynn Palace reported impressive figures, particularly in the premium mass market segment. Fitch estimates suggest a significant rebound, with mass-market baccarat reaching 91% of pre-pandemic levels in 2023.

Fitch anticipates Wynn's financial metrics to improve steadily, with a projected reduction in EBITDAR leverage by 2025. The company's strategic focus on both Macau and Las Vegas markets is expected to drive growth and enhance creditworthiness. Wynn's liquidity position remains robust, paving the way for further expansion and investment opportunities.

While Wynn Resorts scaled back its operations in several US states, its presence in Nevada remains strong. The company's decision to divest certain assets underscores its commitment to strategic realignment. Meanwhile, the acquisition of Wynn's sports betting licenses by Penn Entertainment signals a shift in market dynamics, with new opportunities emerging in the sports betting landscape.