Bally's flags going-concern doubt as casino buildout strains liquidity

Yahoo Finance · 5 hours ago
Bally's flags going-concern doubt as casino buildout strains liquidity
  • Bally's disclosed substantial doubt about its going-concern status, citing risk of breaching liquidity and leverage requirements within a year without additional financing or planned transactions.
  • The casino operator is funding a $4 billion Bronx casino resort and a $1.34 billion Chicago casino while selling assets, issuing stock, and adding debt.
  • Q2 revenue rose 20% year over year to $792.2 million, but Fitch Ratings maintains a B- rating with a negative outlook on elevated leverage and expected free-cash-flow deficits.
  • Gaming and Leisure Properties committed up to $2.07 billion across construction funding and other financing arrangements, giving Bally's a capital source for its development pipeline.
  • The Chicago project has roughly $400 million of contractual spending remaining and total development costs exceed contractual obligations.

Quotes

substantial doubtBally's Corporation
B- rating with a negative outlookFitch Ratings
expected free-cash-flow deficitsFitch Ratings

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