Additionally, while Macau stocks remain sluggish, there\u2019s strong appetite among global bond investors for debt issued by Macau casino operators. That is signaling that buyers believe default risk is minimal, despite the high-yield grades on those bonds.<\/p>\n
\u201cWe do not see significant further upside potential in the issuers\u2019 ratings in the near term, as reflected by their Stable Outlooks,\u201d added Fitch. \u201cSJM Holdings\u2019 leverage metric, in particular, remains high and is likely to fall to its rating thresholds only in 2026, in our view. There is also a risk that the recovery in Macao\u2019s gaming revenues could be slowed by possible policies to tighten capital outflow from the Chinese mainland.\u201d<\/p>\n
The Macau recovery has been led by mass and premium mass players, with VIP action still tepid due to the fractured junket business.<\/p>\n
The VIP segment, however, is on a slower path to recovery and unlikely to return to pre-pandemic revenue levels in the near future. This slower rebound in the VIP segment can be attributable to recent years\u2019 regulatory tightening in China\u2019s treatment of gaming tourism and the broader economic challenges facing China,\u201d<\/strong> concluded Fitch.<\/p><\/blockquote>\nRecent data indicate that in the fourth quarter, MGM China and Wynn Macau — which operate a combined four venues there — gained market share, while leaders Galaxy Entertainment and Sands China ceded modest amounts of share.<\/p>\n","protected":false},"excerpt":{"rendered":"
Macau casino operators should benefit from rising gross gaming revenue (GGR) as tourism to the gaming enclave from mainland China increases. But the process of reducing debt could take a while. That’s according to Fitch Ratings, which said more credit upgrades for the concessionaires aren\u2019t likely over the near term. Earlier this month, the ratings […]<\/p>\n","protected":false},"author":46,"featured_media":289576,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10],"tags":[81913,81903],"acf":[],"yoast_head":"\n
Macau Casino Operators Debt Reduction Could Take Some Time<\/title>\n \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