Marina Bay Sands in Singapore<\/a>, while Wynn needs to wring more upside out of its US venues in Boston and Las Vegas.<\/p>\n<\/div>\n\u201cMGM is the most insulated from continued weakness in the Macao gaming market because of the strong recovery in its extensive US operations,\u201d adds Moody\u2019s. \u201cSJM is highly exposed, not only because of its exclusive footprint in Macao but also because high operating expenses are driving EBITDA negative, which can further increase debt and weaken both liquidity and capital structure.\u201d<\/p>\n
Slow Recovery Problematic<\/h2>\n
Nearly seven months into 2022, it\u2019s becoming clear that barring a miracle, Macau\u2019s recovery will be put off until 2023, and that\u2019s a best-case scenario.<\/p>\n
\u201cIt could occur mainly because of continued travel restrictions and business closures amid the resurgence of the pandemic. In this downside scenario, we assume mass GGR will return to only 60% of pre-pandemic levels in 2023 and 80% in 2024. As a result, credit metrics of Macao-focused operators will remain very weak till 2024, and their ratings will come under heightened pressure,\u201d concludes Moody\u2019s<\/p>\n
In a note to clients today, Morgan Stanley upgraded Wynn Macau to \u201coverweight\u201d from \u201cequal-weight\u201d while reiterating an \u201coverweight\u201d rating on Sands China. The bank rates MGM China \u201cequal-weight.\u201d <\/strong><\/p>\nThose are the Macau arms of the trio above of US-based gaming companies.<\/p>\n","protected":false},"excerpt":{"rendered":"
On the heels of news that Macau is extending the temporary closure of casinos by another five days, it\u2019s safe to say concessionaires there face considerable operational risk. The new restrictions equal the special administrative region\u2019s second round of casino closures since the onset of the coronavirus pandemic. As a result, analysts view the third […]<\/p>\n","protected":false},"author":46,"featured_media":221849,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69069,10],"tags":[],"acf":[],"yoast_head":"\n
Macau Concessionaires Contending Plenty Of Risks, Says Moody's<\/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