The recent credit downgrades to Bally’s Corp. are not expected to impede plans for the construction of a $1.5 billion, 33,000-seat stadium, reassured the head of the Las Vegas Stadium Authority.
Steve Hill, chairman of the stadium authority, stated that the downgrades to Bally’s credit rating will not disrupt the proposed baseball stadium project, which is being spearheaded by the Oakland Athletics (A’s).
The stadium authority’s involvement is directly tied to the Oakland A’s, who are overseeing the financing for the stadium, set to be erected on nine acres of the 35-acre Tropicana resort site operated by Bally’s.
Moody’s Investors Services recently downgraded Bally’s from “B1” to “B2,” while S&P Global Ratings cut its rating from “B” to “B-,” categorizing it as junk-bond status. These actions come as Bally’s prepares to shut down its hotel and casino operations on Tuesday.
Despite concerns raised by analysts about potential impacts on collaborations between the A’s, landlord Gaming & Leisure Properties Inc., and Bally’s for the construction of a new resort adjacent to the stadium, Hill remained optimistic about the stadium’s development.
Analysts had speculated that the credit downgrades might hinder Bally’s ability to secure financing for its various projects, including a Chicago casino, a gaming license in New York, and a replacement project at the Tropicana.
However, Hill emphasized that the A’s have been in close coordination with the stadium authority, and any investment for the stadium would be facilitated through them.
Ahead of its imminent closure, Bally’s representatives offered reporters a final tour of the property, with preparations underway for the shutdown of the casino on Tuesday. Despite the impending closure, some guests continued to enjoy available slots, while the property’s iconic theater spaces underwent preparation for closure.
The fate of the historic arched stained-glass canopy ceiling, installed in 1973 and resting above the casino floor, remains uncertain, with Tropicana officials yet to decide on preservation efforts for the artwork.
Original article: https://www.yogonet.com/international/noticias/2024/04/02/71522-ballys-credit-downgrade-unlikely-to-impact-as-stadium-project-official-assures
