The review was published on Thursday and did not include comments from the Moody's rating committee.
Moody's said Nagakov's existing "B1" rating was "constrained" by its single-site operations, uncertainty over the implementation of a gaming tax in Cambodia, political risks in Cambodia and exposure to an evolving regulatory framework.
Nagakov has long-standing license exclusivity for casino operations in Cambodia's capital Phnom Penh.
Moody's said Nagakov was rated one notch above Cambodia's sovereign credit rating based on "the assessment that the company is unlikely to be affected if Cambodia's economic fundamentals weaken."
In other comments released on Wednesday, Union Gaming Securities LLC analyst John DeChri said the long-anticipated law to regulate casino business in Cambodia would provide some clarity for Nagakov's investors if enacted in terms so far emerged from media reports on government officials' comments.
"We are encouraged to see the law develop in the Cabinet," said DeCree. "In particular, the gaming tax rate is consistent with our expectations, including 4 percent of total gaming revenue for VIPs and 7 percent for the public, which will make Cambodia "one of the most favorable gaming tax rates in the world."
According to company comments, Nagakov's gaming business is currently subject to a number of flat-rate taxes negotiated between the company and the government.
Under the Gaming Act, "formal clarity" on proposed tax rates would be "positive as it removes potential overhangs of adverse taxation in the future," Union Gaming said.
On July 19, Nagakov was allowed by the Cambodian government to reopen "all casino businesses," including bulk market game tables, depending on the period of closure as a precaution against the spread of COVID-19, it said in a filing.
Nagakov announced earlier this month that it had negotiated a deal with the Cambodian government to allow the VIP table game and slot machine business to reopen as part of its move away from COVID-19 response measures from July 8. In a commentary to GGRAsia on July 9, Nagakov's chairman, Tim McNally, said the resumption of the VIP and slot machine business had generated a "very positive public response."
BY: 온라인카지노
