Credit Suisse: Wynn Macau At Risk Of Cutting Its Dividend

In a note to clients on Thursday, Kenneth Fong of Credit Suisse suggested that

subsidiary Wynn Macau is at risk of slashing its dividends. “In light of the risk of earnings deterioration in 2015 but ongoing capex requirement for the upcoming projects, sustainability of dividend becomes one of the big concerns from investors,” Fong wrote. The analyst adds that Wynn Macau has the most downside risk on dividend distribution among its peers. According to Fong,

Sands China is the most capable casino operator of sustaining its dividend payments while

and

are both “flexible” to increase its dividend payouts. MGM China will see heavy capex expectations from its MGM Cotai project due to open in 2016, but the company is “incentivised” to maintain its dividend payment given the funding need from its parent company,

according to Fong.