Credit rating experts are on island to vet the financial standing of the Saipan casino and are expected to issue a financial rating in the coming months.<\/p>\n
Commonwealth Casino Commission executive director Edward C. Deleon Guerrero stressed yesterday these rating agencies were \u201cthird parties\u201d and that they expect a rating out in the coming months. The agencies met with the casino, Best Sunshine International, Ltd, and the casino commission yesterday.<\/p>\n
Rating agencies essentially rate a debtor\u2019s ability, in this case the Saipan casino, to pay back debt on time and the health of its bonds.<\/p>\n
It also ties into BSI\u2019s ability to raise capital and finance its mammoth casino resort projects on island.<\/p>\n
Notably, the names of these agencies and the very fact they are on island was a contention of public disclosure during a commission meeting yesterday.<\/p>\n
Casino officials debated the extent of disclosure with commission lawyer Michael Ernest who defended the CNMI\u2019s Open Government Act.<\/p>\n
The much ado about disclosure centered on whether or not the \u201centire [public] meeting with the rating company\u201d should be under executive session or be open for public disclosure, Deleon Guerrero said yesterday.<\/p>\n
\u201cSome of the agencies that were here today were not necessarily public information because as the [casino] company prepares to do its own financing\u2014this is a publicly listed company\u2014and anything they do particularly in the area of revenue generation, they have to follow the Hong Kong stock market rules and related procedures,\u201d explained Deleon Guerrero.<\/p>\n
Deleon Guerrero would not characterize the debate as a \u201cdisagreement\u201d when asked, but said the casino took the position the finances involved \u201cprivileged propriety information,\u201d and cited Hong Kong stock market rules and procedures that prevented this disclosure.<\/p>\n
Nevertheless, the commission took that position \u201cthat anything that is not specifically confidential should be open to the public so that you folks the media can sit in and listen,\u201d Deleon Guerrero said. <\/p>\n
\u201c\u2026At all possible, we would like to make everything public through the Open Government Act,\u201d he said.<\/p>\n
Still, they \u201cwere asked not to identify any one of\u201d the rating agencies, Deleon Guerrero also said. <\/p>\n
\u201cThey\u2019ve requested that pursuant to some sections of their publicly listed situation in Hong Kong that the mere fact that [the agencies are here] should not be for public disclosure.\u201d<\/p>\n
He did, though, disclose that officials from Morgan Stanley, Credit Suisse, among other groups, were present as \u201cfinancial institutions.\u201d<\/p>\n
\u201cOur concern is that we have an Open Government Act here and that we want to comply. In whatever we do we want it to be transparent.\u201d<\/p>\n
In the end, he said, the commission proceeded with discussion publicly. And only when they felt that the discussions were centering in on propriety most decided to enter executive session, he said.<\/p>\n
\u201cBut there is nothing that the commission made as far official decisions and rulings, we cannot do that in executive session so none was made,\u201d he added, saying that the commission had gone on recess and are meeting with the rating agencies again today and Thursday.<\/p>\n
Cease-and-desist order<\/strong><\/p>\n Deleon Guerrero was also pressed yesterday for an update on a meeting that the commission had with the Bureau of Environmental and Coastal Quality officials and construction contractors recently, over reported regulatory violations at the Grand Mariana Casino resort construction site in the heart of prime beachside in Garapan.<\/p>\n MCC International Saipan LTD is the prime contractor with the Grand Mariana and is also cosignatory to many of cargo construction goods that have arrived on island recently.<\/p>\n The company\u2019s subcontractors, though, have presented issues with overstaying workers, and defecating on construction site beaches, among others, a highly placed source said yesterday.<\/p>\n This has prompted a \u201cCEASE AND DESIST\/ADMINISTRATIVE ORDER, signed by Frank Rabauliman, BECQ administrator, dated March 31, 2016, in reference to the Division of Environmental Quality (Complainant) vs. Imperial Pacific International (CNMI), LLC (Respondent) on Case No. DEQ WEEC 2016-AO-002\u201d to be issued to the company.<\/p>\n \u201cMy understanding was that BECQ gave them a list of things to do and my understanding that is being discussed,\u201d said Deleon Guerrero, when pressed for more information. <\/p>\n \u201cMy understanding is that BECQ has restricted them from working on the evenings and on Sundays until those issues that were requested to provided were provided,\u201d he said. \u201cSo we don\u2019t know what the status is.\u201d<\/p>\n Request for comment from BECQ sent near press time yesterday was not immediately responded to.<\/p>\n The violations have to do \u201cwith the regulatory conditions that they did not meet,\u201d Deleon Guerrero said, or \u201cBECQ requirements as provided for in the permit.\u201d<\/p>\n \u201cAnd those that deal with wastewater issues,\u201d he added.<\/p>\n The administrative order that prevents construction at evenings and weekends has prompted worry in the commission that this will slow down construction and cause the company to miss its target completion dates.<\/p>\n Deleon Guerrero said the licensee has planned to complete the Grand Marianas\u2019 \u201cgaming\u201d side by December of this year. <\/p>\n \u201cAnd we are concerned that the target date may not be met if they have any other stringent conditions added on by our other regulatory partners.\u201d<\/p>\n \u201c\u2026There are some questions as to whether or not they can meet the scheduled date of completion,\u201d he said.<\/p>\n If they do not meet that date, Deleon Guerrero said, this will become an issue for the commission as they are mobilizing staff to prepare for the additional slot machines, the additional gaming tables, and for preparation for all needed surveillance presence in the facility.<\/p>\n \u201cThat\u2019s very much an issue for the commission,\u201d he said.<\/p>\n Still, Deleon Guerrero insisted that whatever further regulatory decisions come out against the casino, the commission would play its role in enforcing these.<\/p>\n \u201c\u2026If they issue an order, we would expect the licensee to be in compliance of those orders\u2014and if not\u2014we will help them enforce them.\u201d<\/p>\n \u201cWhether [the orders come from] BECQ or the [attorney general] or whatever,\u201d Deleon Guerrero said, \u201cwe are a government entity after all and we are all responsible to enforce the Commonwealth laws and regulations.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" Credit rating experts are on island to vet the financial standing of the Saipan 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