Fitch takes most issue with the fact that each of the six casino licenses are set to expire on June 26, 2022. While the six firms are likely to receive an operating extension because of the pandemic, Fitch says the regulatory uncertainty is still reason for concern.<\/p>\n<\/div>\n
Piling on is the recent developments with VIP junket groups in Macau, which organize luxurious travel packages for mainland China’s wealthiest gamblers. Macau and Beijing are cracking down on such junket groups, and they’re expected to be nonexistent in Macau next year.<\/p>\n
Fitch Ratings says that while the June 2022 expirations of the six gaming permits presents credit vulnerability for the licensees, the agency expects that the companies will all remain operating in Macau in the years ahead.<\/p>\n
“Fitch ultimately believes the concession re-bidding procedure will take a pragmatic form,” the note explained.<\/p>\n
\nThe operators have invested billions of US dollars in capital, are large local employers and critical government tax payers, and have supported the local and mainland government’s broader policy goals, such as the Greater Bay Area Initiative,”<\/strong> the note clarified.<\/p>\n<\/blockquote>\nFitch added that it believes the negative rating watches for the three companies will be resolved. That will happen once Macau provides more clarity regarding the re-bidding process and insight into the region’s next gaming regulatory structure.<\/p>\n
Fitch concluded by saying the ratings watches for Sands, MGM, and SJM will likely be resolved within the next six months. An extension of their licenses past June would temporarily resolve the RWN issuances.<\/p>\n","protected":false},"excerpt":{"rendered":"
Fitch Ratings believes the Macau gaming and tourism industries will begin recovering from more than two years of economic hardship at some point next year. The credit rating agency in its report, 2022 Outlook: Greater China, suggests a meaningful gaming activity rebound will be experienced in mid-2022. Fitch, one of the three major credit ratings […]<\/p>\n","protected":false},"author":25,"featured_media":195028,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,81881],"tags":[],"acf":[],"yoast_head":"\n
Fitch Ratings Forecasts Macau Rebound Mid-2022<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n