S&P Global Ratings revised the outlook on its BB-minus rating on Wynn Resorts to negative from stable on Tuesday, and said the allegations of sexual misconduct against founder and CEO Steve Wynn could hurt the company’s ability to maintain or renew gaming licenses. The move “reflects the significant uncertainty surrounding the resolution of various investigations into the misconduct allegations against the company’s CEO,” the rating agency said in a statement. “This includes the extent to which these allegations impair Wynn Resorts’ brand and hurt cash flow, whether the company is able to maintain its gaming licenses, whether there will be a transition in leadership, and–if so–what form that might take.” Adding to the uncertainty, the Massachusetts Gaming Commission is investigating the issue and other regulators may follow suit, said S&P. Wynn shares were slightly higher Tuesday, but are down 9% on the week, while the S&P 500 has lost 1.5%.
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