Trio of Macau casino operators hit with ‘ratings watch negative’ appraisals

Prominent credit ratings agency Fitch Ratings Incorporated has reportedly assigned a trio of firms behind some of the largest casinos in Macau with a ‘ratings watch negative’ appraisals largely due to ongoing ‘regulatory uncertainty’.

According to a report from GGRAsia, the move from the New York-headquartered firm involving SJM Holdings Limited, Las Vegas Sands Corporation and MGM Resorts International comes as the casino market in Macau is continuing to falter at the hands of the ongoing coronavirus pandemic. The source detailed that the assessment also reflects the fact that the ​three have yet to get their local gaming licenses renewed beyond a looming late-June cut-off.

Onerous obligations:

SJM Holdings Limited is reportedly responsible for some 20 gambling-friendly venues in Macau including the iconic Casino Grand Lisboa property and the recently-premiered Grand Lisboa Palace development. Fitch Ratings Incorporated purportedly pronounced that the Hong Kong-listed operator nevertheless ‘remains on track’ to have refinanced a range of existing loans with a new facility worth approximately $2.44 billion by the time these arrears come due in February.

Reportedly read a statement from Fitch Ratings Incorporated…

“This should leave the company with around $897.3 million of undrawn facilities after repaying existing bank loans of around $1.4 billion as of September 30, 2021, and the company’s liquidity remains strong.

Source: https://news.worldcasinodirectory.com/trio-of-macau-casino-operators-hit-with-ratings-watch-negative-appraisals-98619