TLDR
- S&P upgraded NagaCorp’s long-term credit rating from B to B+, following a similar upgrade from Moody’s
- NagaCorp’s net income nearly tripled in 2025, reaching $309.9 million compared to $110.6 million in 2024
- A full recovery to 2019 profit levels remains unlikely due to the collapse of the VIP junket segment
- The company holds about $372 million in cash with minimal debt, giving it a strong balance sheet
- S&P expects 5%–6% profit growth in 2026 and 2027, with spending on the Naga 3 expansion project ahead
S&P Global Ratings has upgraded the long-term credit rating of NagaCorp Ltd from B to B+, citing improved financial performance and a strong cash position. The rating carries a stable outlook.
The move follows a recent upgrade from Moody’s, which raised NagaCorp’s corporate family rating from B3 to B2, also with a stable outlook. Both agencies pointed to positive trends in the company’s credit profile.
NagaCorp Posts Strong 2025 Results but Full Recovery Remains Distant
NagaCorp owns and operates NagaWorld, a casino resort in Phnom Penh, Cambodia. The company holds a long-term monopoly agreement for gaming operations in the area.
In its 2025 annual results released in March, NagaCorp reported net income of $309.9 million. That was a large jump from $110.6 million in 2024.
EBITDA also rose sharply, reaching $404.4 million in 2025 compared to $202.8 million the year before. However, these figures still trail the company’s 2019 EBITDA of roughly $667 million.
S&P analysts Johann Tan, Isabel Goh, and Shawn Park said NagaCorp had an impressive turnaround in 2025 but cautioned that a full recovery will take time.
The main reason is the loss of VIP junket business. In 2019, the referral VIP segment accounted for about 70% of gross gaming revenue. S&P said that business is unlikely to come back and will continue to weigh on the company’s overall results.
For the first quarter of 2026, NagaCorp reported gross gaming revenue of nearly $174.7 million, up 2.1% year-on-year. Growth was driven by mass-market play, while VIP revenue declined.
S&P said the mass market is supporting current momentum but is not enough on its own to restore pre-pandemic performance levels.
Balance Sheet Strength and Naga 3 Spending Plans
The company’s balance sheet remains a key factor in the upgrade. NagaCorp held about $372 million in cash at the end of 2025.
Its only outstanding debt was a $70 million shareholder loan due this month. After that repayment, the company will have no debt obligations.
S&P said NagaCorp has preserved cash by limiting dividends and capital expenditures since 2022. The company resumed dividend payments in 2025 at a payout ratio of 30%.
Looking ahead, S&P expects shareholder payouts of $100 million to $120 million per year. Capital expenditure is forecast at around $170 million in 2026, rising to roughly $380 million in 2027 as spending on the Naga 3 expansion picks up.
NagaCorp announced in December that it had terminated a subscription agreement meant to fund the Naga 3 project. The company said it still plans to proceed with the development but may reduce its cost and scale.
S&P said the revised investment amount will determine whether the project is funded through internal cash flow or external markets. The agency warned that aggressive spending combined with large shareholder distributions could weaken NagaCorp’s credit quality.
For now, S&P projects profit growth of 5% to 6% in both 2026 and 2027. The agency said the company’s low leverage and cash reserves continue to support its improved rating.
NagaCorp reported Q1 2026 gross gaming revenue of $174.7 million, with mass-market play driving a 2.1% year-on-year increase.
