S&P boosts Downstream Development

S&P said it raised Downstream Development Authority’s issuer rating to B- from CCC.

“The upgrade to B- reflects strong operating performance over the last 12 months that reduces the likelihood of another default. DDA has significantly outperformed our expectations since it reopened its casino in May 2020. Over the last 12 months on a stand-alone basis, DDA has generated almost $100 million in EBITDA, stemming from strong recovery in net revenues, growth over pre-pandemic revenue, and material improvement in EBITDA margins of more than 1,500 basis points,” the agency said in a press release.

S&P said that considering recent operating trends, consumer spending growth and the strong demand for gaming, it forecasts DDA’s fiscal 2021 (ending Sept. 30) revenue to be about 15%-20% above 2019.

The outlook is positive.

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