Key Highlights
- S&P Global Ratings elevated NagaCorp’s long-term credit rating to B+ from B, mirroring a recent Moody’s upgrade
- The casino operator’s 2025 net profit soared to $309.9 million—almost three times the $110.6 million recorded in 2024
- Despite strong gains, reaching 2019 profitability levels appears unlikely given the permanent loss of VIP junket operations
- NagaCorp maintains approximately $372 million in cash reserves with virtually no debt obligations
- S&P forecasts annual profit increases of 5%–6% through 2027, with significant Naga 3 development expenditure planned
S&P Global Ratings has elevated NagaCorp Ltd’s long-term credit assessment to B+ from its previous B rating, recognizing the company’s enhanced financial metrics and robust liquidity position. The ratings agency assigned a stable outlook to the upgrade.
This advancement comes on the heels of Moody’s recent decision to boost NagaCorp’s corporate family rating from B3 to B2, also maintaining a stable outlook. Both rating institutions highlighted favorable developments in the organization’s creditworthiness.
2025 Financial Gains Mark Progress, Though Pre-Pandemic Heights Remain Elusive
NagaCorp controls NagaWorld, a prominent casino complex located in Cambodia’s capital, Phnom Penh. The operator benefits from an extended monopoly license for gaming activities within the region.
The company’s 2025 annual financial statement, published this past March, showed net earnings of $309.9 million. This represented a substantial increase from the $110.6 million recorded during 2024.
EBITDA demonstrated similarly impressive growth, climbing to $404.4 million in 2025 from $202.8 million in the preceding year. Nevertheless, these numbers still fall short of the company’s 2019 EBITDA figure of approximately $667 million.
S&P credit analysts Johann Tan, Isabel Goh, and Shawn Park acknowledged NagaCorp’s remarkable 2025 turnaround while emphasizing that complete recovery will require considerable time.
The primary obstacle is the disappearance of VIP junket operations. During 2019, this referral-based VIP channel generated approximately 70% of total gross gaming revenue. S&P believes this business segment will not return and will continue to constrain overall financial performance.
During the opening quarter of 2026, NagaCorp recorded gross gaming revenue approaching $174.7 million, representing a 2.1% year-over-year increase. This expansion was fueled by mass-market activity, while VIP revenue experienced declines.
According to S&P, the mass-market segment is sustaining present growth but lacks sufficient scale to independently restore pre-pandemic operational performance.
Strong Financial Position and Naga 3 Development Strategy
The company’s financial foundation played a crucial role in the rating enhancement. NagaCorp reported cash holdings of approximately $372 million as of year-end 2025.
Its sole remaining liability consisted of a $70 million shareholder loan scheduled for repayment this month. Following this settlement, the company will operate debt-free.
S&P noted that NagaCorp has maintained its cash position by restricting dividend distributions and capital spending since 2022. The operator reinstated dividend payments during 2025 at a 30% payout ratio.
Moving forward, S&P anticipates annual shareholder distributions ranging from $100 million to $120 million. Capital expenditure is projected at approximately $170 million for 2026, escalating to roughly $380 million in 2027 as Naga 3 expansion spending accelerates.
In December, NagaCorp disclosed the cancellation of a subscription agreement originally intended to finance the Naga 3 project. Management indicated the development will continue but may undergo cost and scope reductions.
S&P stated that the adjusted investment amount will dictate whether the project receives funding from internal cash generation or external financing sources. The agency cautioned that combining aggressive capital deployment with substantial shareholder returns could compromise NagaCorp’s credit strength.
Currently, S&P anticipates profit growth of 5% to 6% for both 2026 and 2027. The agency emphasized that the company’s minimal leverage and substantial cash reserves underpin its upgraded rating.
NagaCorp’s first quarter 2026 results showed gross gaming revenue of $174.7 million, with mass-market operations generating a 2.1% year-over-year gain.
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