CHICAGO (WBBM NEWSRADIO) - Two key credit rating agencies are showing concern over the new scheduled Chicago casino.
Fitch Ratings and S&P lowered their outlook to negative on debt issued by Bally’s, the winner of the Chicago casino bid.
“They in effect cleared their throats and said, ‘hey there may be a problem here and there is a distinct possibility that down the road we could lower the rating,’” said Crain’s Chicago Business columnist Greg Hinz.
Hinz joined the WBBM Noon Business Hour on Tuesday, explaining some of the agencies’ concerns.
“This is a really big project for a company that hasn’t built anything like this….There are lots of things that could go wrong at the cost side, with high inflation, zoning issues, any number of things,” Hinz added.
Hinz said a concern has to be whether or not the $1.7 billion project will be completed on time.
He noted it will be interesting to see what happens with a temporary casino being built on the Near North Side, which he said may offer some insight on what’s ahead for Bally’s.