According to Bloomberg News, Standard & Poors Ratings Service revised its outlook on Kerzner International from stable to negative Tuesday, following the announcement that the company signed an agreement to form a joint venture with Nakheel LLC to build Atlantis, The Palm in Dubai. <\/P><\/p>\n
On Monday, Kerzner International agreed to a joint venture with Nakheel LLC, an entity owned by the government of Dubai to develop Atlantis, The Palm. The first phase of the development, estimated at $650 million will include a 1,000-room resort and an extensive water theme park. <\/P><\/p>\n
The company also recently purchased Club Med, Paradise Island for approximately $40 million and broke ground on the first phase of a $600 million expansion to Atlantis Paradise Island earlier this month. <\/P><\/p>\n
Kerzner International has also announced participation in the development in another project in London. <\/P><\/p>\n
This project, which would consist of a casino and a hotel, is subject to the enactment of appropriate gaming legislation by the United Kingdom. <\/P><\/p>\n
If the project goes forward, Kerzner’s investment in the project is estimated at $350 million. <\/P><\/p>\n
According to Bloomberg News, a Standard & Poor’s analyst revealed that: “Although all of these investments will be made over time, collectively, they utilize a significant portion of Kerzner’s debt capacity within the current rating.” <\/P><\/p>\n
One local analyst agreed with Standard & Poor’s; he observed that Kerzner may be taking on more debt, which would not allow the company the flexibility it would need if there is a sudden downturn in business. <\/P><\/p>\n
“I think the bigger question is that they may not go ahead with Phase III because of their inability to get the necessary funding for all these projects,” he said. <\/P><\/p>\n
He went on to speculate that this could be the reason why so much pressure is being placed on the Government to improve the airport. <\/P><\/p>\n
“They may be buying time as they focus on other destinations where they don’t have presence,” the analyst said. <\/P><\/p>\n
By Martella Matthews, The Nassau Guardian<\/B><\/P><\/p>\n","protected":false},"excerpt":{"rendered":"
The outlook for Kerzner International was changed from stable to negative by a popular ratings agency.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_10223285771444175_51037792744":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[12],"tags":[],"class_list":["post-244078","post","type-post","status-publish","format-standard","hentry","category-headlines"],"_links":{"self":[{"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/posts\/244078","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/comments?post=244078"}],"version-history":[{"count":0,"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/posts\/244078\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/media?parent=244078"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/categories?post=244078"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bahamasb2b.com\/news\/wp-json\/wp\/v2\/tags?post=244078"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}