Moody’s lifts NagaCorp to B2 on stronger casino earnings
Moody’s Ratings has upgraded NagaCorp Ltd.’s corporate family rating to B2 from B3, with a stable outlook. The move reflects stronger earnings and cash flow at the company’s casino operations in Cambodia.
The rating action centres on NagaWorld, the group’s flagship integrated resort in Phnom Penh. The property remains the core driver of NagaCorp’s gaming revenue and operating performance. Moody’s said the company’s financial position has improved alongside a more stable liquidity profile.
“The upgrade reflects continued improvement in NagaCorp’s earnings and cash flow, supported by resilient performance at its mass market and premium segments,” said Anthony Prayugo, a Moody’s analyst.
Earnings recovery drives upgrade
Moody’s pointed to a recovery in gaming activity as a key factor behind the upgrade. NagaCorp reported gross gaming revenue of $692 million in 2025. The increase reflects higher volumes across both mass market and premium segments.
The agency said the company has also benefited from higher-margin products. These have supported overall earnings growth at the NagaWorld complex. Cambodia’s operating environment continues to play a role. Lower labour costs and favourable gaming tax conditions help sustain margins.
NagaCorp’s position in Phnom Penh remains central to its credit profile. Moody’s highlighted the company’s dominant presence in the city’s regulated gaming market. This position supports stable demand across its core customer segments.
Structural risks remain in focus
Despite the upgrade, Moody’s flagged several structural risks. The company operates mainly from a single integrated resort. This creates exposure to one location and one core asset.
The agency also pointed to Cambodia’s evolving regulatory framework. Political conditions in the country remain a factor in the credit assessment. These elements can influence operating stability over time.
Limited access to external financing was also noted. This restricts funding flexibility compared with larger regional operators. Competition from other gaming markets in Asia remains a background factor as travel patterns continue to normalise.
Naga 3 expansion faces uncertainty
Moody’s said uncertainty remains around the Naga 3 expansion project. The development has been affected by the withdrawal of promoter funding. This has changed how the project is expected to be financed.
The final capital expenditure plan has not yet been disclosed. However, Moody’s expects the revised investment to be significantly lower than the original $3.5 billion estimate. The agency said funding is likely to come mainly from internal cash flows.
NagaCorp retains flexibility over the project timeline. There is no fixed completion deadline. This allows the company to adjust spending in line with its financial position.
Liquidity position supports NagaCorp outlook
Moody’s maintained a stable outlook on the rating. The agency expects NagaCorp to continue generating earnings and free cash flow over the near term.
As of 31 December 2025, the company held cash and deposits of $372 million. This provides a buffer for upcoming obligations. Total debt stood at $184 million, including a shareholder loan due in May.
Moody’s said these resources are sufficient to meet near-term commitments. These include capital expenditure and dividend payments. The agency expects the company to manage its financial obligations within its existing liquidity position.
The rating agency added that NagaCorp’s credit profile will depend on its ability to sustain earnings while managing expansion spending. Maintaining balance between cash generation and investment remains central to the current rating.
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