Fitch Ratings downgraded Universal Entertainment Corp.’s outlook to negative due to uncertainty at Okada Manila. The rating agency flagged weak operating recovery and unclear near-term prospects as key concerns. Universal owns Tiger Resort, which operates Okada Manila in the Philippines.
Fitch noted that Okada Manila continues to underperform compared to pre-pandemic levels. Despite easing restrictions and improved tourism, revenues remain unstable. The casino’s slow rebound puts pressure on Universal’s financial flexibility. Consequently, Fitch maintained Universal’s long-term rating at ‘B’, but shifted the outlook to negative.
According to Fitch, Okada Manila’s performance still trails behind its competitors. Furthermore, the company’s weak liquidity limits its ability to absorb further losses. While management has taken steps to cut costs, recovery progress appears inconsistent. As a result, Fitch sees limited improvement in the near term.
Additionally, Universal faces elevated refinancing risks. The company must repay significant debts by 2026. However, uncertain earnings and limited cash flows make refinancing more difficult. Fitch emphasized that these financial risks compound the pressure on Universal’s credit profile.
Fitch may lower the rating further if earnings weaken or liquidity worsens. On the other hand, stronger performance and clearer recovery could stabilize the outlook. For now, Okada Manila’s struggles keep Universal’s outlook under negative watch.
