April 3, 2024 2 min read

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Bally’s Remains Bullish on Petersburg Casino Despite Credit Rating Setbacks

Bally’s told The Progress-Index that its success in Virginia will depend on its selection by the city and the city’s voters’ approval via November’s referendum

Bally’s Corporation just suffered another setback as Fitch Ratings, an American credit rating agency, lowered its outlook on the operator. Previously B+, the company’s rating has now been reduced to B because of the casino company’s precarious financial situation.

Fitch is not the only big credit rating agency to lower Bally’s either. Previously, Moody’s and S&P also lowered their grade for Bally’s. For reference, Moody’s reduced the operator’s rating to B2, while S&P downgraded its outlook for Bally’s to junk-bond status.

In spite of that, Bally’s told The Progress-Index that the rating changes would not impact the bid for a casino in Petersburg, Virginia. The casino company plans to challenge four competitors for the proposed casino as it remains confident in its ability to construct a world-class property in the Old Dominion.

Other bidders include the Cordish Companies, Penn Entertainment, Rivers Casino and the Warrenton Group.

Bally’s told The Progress-Index that its success in Virginia will ultimately depend on its selection by the city and the city’s voters’ approval via November’s referendum. In any case, a spokesperson confirmed that the company remains optimistic despite the setbacks.

For reference, Senate Bill 628 seeks to turn Petersburg into the fifth city in the state to host a casino. While Governor Youngkin is supportive of the measure, he still has some questions. The leader has until April 8 to sign, amend or veto the legislation.

Bally’s Needs to Fund Its Chicago Project

In the meantime, the Bally’s spokesperson said that it is too early to properly determine what the long-term effect of its lowered rating would be. The company is currently experiencing some financial struggles as it continues to seek another $800 million for its $1.1 billion casino in downtown Chicago.

At the same time, Bally’s is also considering the construction of a smaller casino in Pennsylvania, close to the Penn State University campus. However, the lower credit rating may make raising money for these projects more difficult experts believe.

In other news, K&F Growth Capital, an asset management firm and minority shareholder in Bally’s, recently expressed its concerns about Standard General’s recent proposal to acquire all outstanding shares in the casino company. In a letter to the Bally’s board, the shareholder expressed its concern about the bid and discussed some issues.

Journalist

Although Fiona doesn't have a long-spanning background within the gambling industry, she is an incredibly skilled journalist who has built a strong interest in the constantly growing iGaming network. The team at GamblingNews.com is glad to have her on our roster to help deliver the best stories as soon as they hit. Aside from writing, she loves to dabble in online casino games such as slots and roulette, both for her own enjoyment and also as research to better improve her understanding of the industry.

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