{"id":132592,"date":"2020-04-09T11:12:50","date_gmt":"2020-04-09T18:12:50","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=132592"},"modified":"2020-04-09T12:40:58","modified_gmt":"2020-04-09T19:40:58","slug":"glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/","title":{"rendered":"Gaming and Leisure, MGP, Vici Earn Negative Outlooks From Moody’s Amid Coronavirus, Weak Economy"},"content":{"rendered":"

Gaming and Leisure Properties (NASDAQ:GLPI), MGM Growth Properties (NYSE:MGP), and Vici Properties (NYSE:VICI) each had outlooks on their credit ratings lowered to \u201cnegative\u201d from “stable” by Moody’s Investor\u2019s Service. The research firm cited the coronavirus pandemic and vulnerabilities created by the deteriorating US economy.<\/p>\n

\"Moody's
Gaming REITs are vulnerable in the zero-revenue environment, says Moody’s, because, well, rent still has to be paid. (Image: Reuters)<\/figcaption><\/figure>\n

As real estate investment trusts (REITs), GLP, MGP, and Vici act as landlords for operators, including Caesars Entertainment (NASDAQ:CZR), MGM Resorts International (NYSE:MGM), and Penn National Gaming (NASDAQ:PENN), just to name a few. Usually, that’s an effective business model, but at a time when all domestic casinos are closed, speculation is intensifying<\/a> about the ability of gaming companies to handle near-term lease obligations.<\/p>\n

The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets,\u201d said Moody’s in a report obtained by Casino.org.<\/i> \u201cThe combined credit effects of these developments are unprecedented. The gaming sector has been one of the sectors most significantly affected by the shock, given its sensitivity to consumer demand and sentiment.\u201d<\/p><\/blockquote>\n

The credit rater has Ba3 marks on MGP and Vici and a Ba1 grade on GLP, all of which are non-investment grade ratings.<\/strong><\/p>\n

Someone’s Gotta Pay the Rent<\/h2>\n

On April 1, rent came due and, by some estimates as of April 7, roughly a third of US residential renters hadn’t fulfilled their obligations. Commercial real estate firms, including the gaming REITs, aren’t commenting on how their respective tenants are handling this month’s obligations. But for those struggling to make payments, it’s likely landlords will work with clients to ease rent for a few months while baking the owed amount into the back end of rental agreements.<\/p>\n

\n

For many analysts and investors, the question that needs to be answered isn’t as much about near-term rent collection as it is about how the gaming industry will look<\/a> once the coronavirus is in the rearview mirror.<\/p>\n<\/div>\n

Negative outlooks on the gaming landlords reflect \u201cthe uncertain prospects for recovery, as job losses and declining asset values will impact consumer discretionary spending once the public health crisis subsides,\u201d said Moody’s.<\/p>\n

Regional Issues<\/h2>\n

As the COVID-19 pandemic wracks the gaming industry, some analysts are speculating that regional operators will recover faster than those with significant Las Vegas exposure, because many gamblers need to fly to Sin City and air travel may be out of style in the aftermath of the virus.<\/p>\n

Should that theory prove accurate, GLP and Vici could benefit because of the regional diversity in their portfolios. MGP owns the real estate assets of several MGM casinos outside of Las Vegas, but it also owns the property of all of the operators’ Strip venues except the Bellagio<\/a>.<\/p>\n

\u201cMore specifically, the weaknesses in MGP’s credit profile, including its exposure to travel disruptions and discretionary consumer spending, have left it vulnerable to shifts in market sentiment in these unprecedented operating conditions, and MGP remains vulnerable to the outbreak continuing to spread,\u201d according to Moody’s.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Gaming and Leisure Properties (NASDAQ:GLPI), MGM Growth Properties (NYSE:MGP), and Vici Properties (NYSE:VICI) each had outlooks on their credit ratings lowered to \u201cnegative\u201d from “stable” by Moody’s Investor\u2019s Service. The research firm cited the coronavirus pandemic and vulnerabilities created by the deteriorating US economy. As real estate investment trusts (REITs), GLP, MGP, and Vici act […]<\/p>\n","protected":false},"author":46,"featured_media":132596,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\nGLP, MGM Growth and Vici All Get Negative Outlooks From Moody's<\/title>\n<meta name=\"description\" content=\"All three gaming REITs received negative debt ratings outlooks from Moody's Investors due to the ill effects of the coronavirus.\" \/>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"GLP, MGM Growth and Vici All Get Negative Outlooks From Moody's\" \/>\n<meta property=\"og:description\" content=\"All three gaming REITs received negative debt ratings outlooks from Moody's Investors due to the ill effects of the coronavirus.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2020-04-09T18:12:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-04-09T19:40:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/04\/cp2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"897\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/\",\"url\":\"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/\",\"name\":\"GLP, MGM Growth and Vici All Get Negative Outlooks From Moody's\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/04\/cp2.jpg\",\"datePublished\":\"2020-04-09T18:12:50+00:00\",\"dateModified\":\"2020-04-09T19:40:58+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"All three gaming REITs received negative debt ratings outlooks from Moody's Investors due to the ill effects of the coronavirus.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/04\/cp2.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/04\/cp2.jpg\",\"width\":1280,\"height\":897,\"caption\":\"Gaming REITs are vulnerable in the zero revenue environment, says Moody's because, well, rent still has to be paid. (Image: Reuters)\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"News\",\"item\":\"https:\/\/www.casino.org\/news\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Financial\",\"item\":\"https:\/\/www.casino.org\/news\/financial\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"Gaming and Leisure, MGP, Vici Earn Negative Outlooks From Moody’s Amid Coronavirus, Weak Economy\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.casino.org\/news\/#website\",\"url\":\"https:\/\/www.casino.org\/news\/\",\"name\":\"Casino.org\",\"description\":\"Latest Casino and Gaming News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.casino.org\/news\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\",\"name\":\"Todd Shriber\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png\",\"caption\":\"Todd Shriber\"},\"description\":\"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.\",\"sameAs\":[\"https:\/\/muckrack.com\/todd-shriber\",\"https:\/\/www.linkedin.com\/in\/toddshriber\/\",\"https:\/\/x.com\/etfgodfather\"],\"url\":\"https:\/\/www.casino.org\/news\/author\/todd-shriber\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"GLP, MGM Growth and Vici All Get Negative Outlooks From Moody's","description":"All three gaming REITs received negative debt ratings outlooks from Moody's Investors due to the ill effects of the coronavirus.","robots":{"index":"noindex","follow":"follow"},"og_locale":"en_US","og_type":"article","og_title":"GLP, MGM Growth and Vici All Get Negative Outlooks From Moody's","og_description":"All three gaming REITs received negative debt ratings outlooks from Moody's Investors due to the ill effects of the coronavirus.","og_url":"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/","og_site_name":"Casino.org","article_publisher":"https:\/\/www.facebook.com\/Casino.OrgNews","article_published_time":"2020-04-09T18:12:50+00:00","article_modified_time":"2020-04-09T19:40:58+00:00","og_image":[{"width":1280,"height":897,"url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/04\/cp2.jpg","type":"image\/jpeg"}],"author":"Todd Shriber","twitter_card":"summary_large_image","twitter_creator":"@etfgodfather","twitter_site":"@Casino_Org","twitter_misc":{"Written by":"Todd Shriber","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/","url":"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/","name":"GLP, MGM Growth and Vici All Get Negative Outlooks From Moody's","isPartOf":{"@id":"https:\/\/www.casino.org\/news\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/#primaryimage"},"image":{"@id":"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/#primaryimage"},"thumbnailUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/04\/cp2.jpg","datePublished":"2020-04-09T18:12:50+00:00","dateModified":"2020-04-09T19:40:58+00:00","author":{"@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85"},"description":"All three gaming REITs received negative debt ratings outlooks from Moody's Investors due to the ill effects of the coronavirus.","breadcrumb":{"@id":"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/#primaryimage","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/04\/cp2.jpg","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2020\/04\/cp2.jpg","width":1280,"height":897,"caption":"Gaming REITs are vulnerable in the zero revenue environment, says Moody's because, well, rent still has to be paid. (Image: Reuters)"},{"@type":"BreadcrumbList","@id":"https:\/\/www.casino.org\/news\/glp-mgm-growth-and-vici-all-get-negative-outlooks-from-moodys\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"News","item":"https:\/\/www.casino.org\/news\/"},{"@type":"ListItem","position":2,"name":"Financial","item":"https:\/\/www.casino.org\/news\/financial\/"},{"@type":"ListItem","position":3,"name":"Gaming and Leisure, MGP, Vici Earn Negative Outlooks From Moody’s Amid Coronavirus, Weak Economy"}]},{"@type":"WebSite","@id":"https:\/\/www.casino.org\/news\/#website","url":"https:\/\/www.casino.org\/news\/","name":"Casino.org","description":"Latest Casino and Gaming News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.casino.org\/news\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85","name":"Todd Shriber","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.casino.org\/news\/#\/schema\/person\/image\/","url":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","contentUrl":"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/03\/cropped-11-96x96.png","caption":"Todd Shriber"},"description":"Todd Shriber is a senior news reporter covering gaming financials, casino business, stocks, and mergers and acquisitions for Casino.org. Todd got his start in financial markets as a reporter with Bloomberg News. Later, he became a trader at a Southern California-based long\/short hedge fund, where he specialized in the trading sector and international ETFs leading up to and during the financial crisis. He joined Casino.org in 2019. Currently, Todd analyzes, researches, and writes on ETFs for various web-based publications and financial services firms. Shriber has been featured and quoted in Barron's, CNBC.com, and The Wall Street Journal. His work can also be found on Benzinga, ETF Daily News, ETF Trends, MarketWatch, Fox Business, and Nasdaq.com. He currently resides in Las Vegas, where he enjoys golf and taking his black lab to the dog park. He's also an avid sports fan and likes to wager on college football and the NBA. You can also find him at the three-card poker and roulette table, even though he knows better. Contact Todd at todd.shriber@casino.org.","sameAs":["https:\/\/muckrack.com\/todd-shriber","https:\/\/www.linkedin.com\/in\/toddshriber\/","https:\/\/x.com\/etfgodfather"],"url":"https:\/\/www.casino.org\/news\/author\/todd-shriber\/"}]}},"_links":{"self":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/132592"}],"collection":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/users\/46"}],"replies":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/comments?post=132592"}],"version-history":[{"count":0,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/posts\/132592\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media\/132596"}],"wp:attachment":[{"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/media?parent=132592"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/categories?post=132592"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.casino.org\/news\/wp-json\/wp\/v2\/tags?post=132592"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}