Moody’s Lowers Wynn Credit Outlook to Stable From Positive on High Leverage

• Moody’s reduced its outlook on three Wynn Resorts entities to “stable” from “positive”
• The revision specifically targets the company’s primary Las Vegas and Macau operating segments, alongside Wynn Resorts Finance
• The ratings agency pointed to high leverage as a reason for the revision

Moody’s Ratings has lowered its outlook on three Wynn Resorts (NASDAQ: WYNN) subsidiaries to stable from positive, pointing to the casino giant’s 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.

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 that are 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.