SJM and LVS downgraded in Macau

SJM Holdings and Las Vegas Sands’ credit ratings have been cut by Fitch, which said it has reduced confidence in the Macau market’s recovery.

The ratings agency said the continued adherence to a zero-Covid policy in both Macau and mainland China is constraining cash flow generation for the Macau operators. It said it had a low degree of confidence as to when the policies may be relaxed.

As a result it has reduced its projections for Macau’s gross gambling revenue this year to 73 per cent below pre-pandemic levels. That may improve to 50 per cent in 2023 and 30 per cent in 2024.

In such a revenue scenario, Fitch said that Las Vegas Sands’ leverage trajectory is no longer consistent with an investment-grade rating.

Source: Asia Gaming Brief