Moody’s Cuts Wynn Outlook to ‘Stable,’ Citing High Leverage
Posted on: June 29, 2026, 10:50h.
Last updated on: June 29, 2026, 10:50h.
- Moody’s reduced its outlook on three Wynn Resorts entities to “stable” from “positive”
- Las Vegas, Macau entities among those affected
- The ratings agency pointed to high leverage as a reason for the revision
Moody’s Investors Service lowered its outlook on the credit profiles of three Wynn Resorts (NASDAQ: WYNN) subsidiaries, citing stubbornly high leverage.
In affirming a B1 credit rating on the casino operator, the ratings agency reduced its outlook on Wynn Las Vegas, Wynn Macau and Wynn Resorts Finance to “stable” from “positive.” Moody’s has rated Wynn B1 for nearly two years. On the research firm’s ratings scale, B1 is four notches into junk territory and is considered a “highly speculative” grade. High leverage is the culprit behind the downward outlook revision.
The stable outlooks reflect that the company has not reduced leverage to well below 6x,” notes Moody’s. “While Wynn’s performance has improved since 2025, leverage still remains elevated as compared to our prior expectations.”
At the end of the first quarter, Wynn had $1.19 billion in cash on hand, not including $607.6 million of “short-term investments held by Wynn Macau,” but the Encore operator also had $10.52 billion in debt. Roughly $6.6 billion of that sum was held by the Las Vegas and Macau units.
Wynn Liquidity Still Sturdy, Says Moody’s
While Moody’s dinged Wynn’s credit outlook, the ratings agency praised the casino operator’s liquidity profile, noting that in addition to the aforementioned cash position, the gaming company has ample access to credit.
Wynn has two revolving credit facilities it can tap if needed — a $2.5 billion revolver for Wynn Macau that has $1.35 billion available and a $1.25 billion for Wynn Resorts Finance that’s fully available today. It’d behoove Wynn to be judicious in accessing those credit lines because Moody’s points out that a deteriorating liquidity position could cause a credit downgrade.
Looking further out, the opening of the Wynn Al Marjan Island next year in the United Arab Emirates (UAE) could provide a long-term lift for the operator because it will diversify its revenue stream — one that’s largely dependent on Macau and Las Vegas.
“Key credit concerns include Wynn’s limited diversification, despite being one of the largest U.S. gaming operators in terms of revenue, and exposure to reductions in cyclical discretionary consumer and business spending,” adds Moody’s.
Wynn Could Pursue Expansion Opportunities
Following the debut of the Wynn’s $5.1 billion casino resort in the UAE, which will be the first regulated gaming venue in Middle East history, it’s possible the operator will explore other global expansion opportunities.
“We expect that Wynn will pursue other large resort development opportunities around the world, following the opening of its project in the UAE,” observes Moody’s. “As a result, the company’s leverage will increase during periods when it is developing new projects.”
Where opportunities credible and large enough to move the needle for Wynn arise is a different matter because Japan and Thailand — two countries in which Wynn previously expressed interest — are likely off the table for the foreseeable future.
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