VICI Properties secured investment-grade status across all three major rating agencies after Moody's Investors Service upgraded the casino landlord to "Baa3" from "Ba1" with a stable outlook.

The upgrade reflects VICI's improved financial position and strategic growth, with CFO David Kieske noting that each transformational transaction has strengthened the company's balance sheet. This follows VICI's recent third-quarter results, which included a second increase to their 2024 adjusted funds from operations (AFFO) guidance.

The investment-grade rating from Moody's is significant as it completes VICI's trifecta of investment-grade ratings alongside Fitch Ratings and S&P Global Ratings. This status typically results in lower borrowing costs and improved access to capital markets.

Moody's highlighted VICI's strong financial metrics, including:

• Fixed charge coverage of 4.5x
• Improved Net Debt/EBITDA ratio of 4.7x as of September 30, 2024
• Dominant market position and scale
• Resilient operating cash flow
• Strong liquidity
• Disciplined financial policy

However, Moody's noted tenant concentration as a continuing challenge, with Caesars Entertainment and MGM Resorts International representing approximately 39% and 35% of VICI's annual cash rent, respectively. To address this, VICI has indicated interest in diversifying through acquisitions outside Las Vegas and investments in non-gaming leisure properties across the United States.

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