Fitch upgrades Las Vegas Sands outlook to positive
Fitch Ratings citied a strong rebound in Macau and Singapore.
Macau.- Fitch Ratings Inc. has revised its outlook for Las Vegas Sands (LVS) and its subsidiaries in Macau and Singapore from negative to positive. According to analysts, the US-based casino operator, parent company of Sands China and Marina Bay Sands, has seen a robust rebound in Macau and a strong performance in Singapore. The agency has affirmed the group’s rating at ‘BB+’.
Sands China‘s adjusted property earnings before interest, taxation, depreciation and amortisation (EBITDA) for the second quarter was US$541m. Net revenue was up 316.4 per cent year-on-year to US$1.62bn while net income for the period amounted to US$187m
Marina Bay Sands generated a record US$432m in EBITDA for the three months ending June 30. That’s a 24 per cent increase compared to pre-pandemic figures. Year-on-year adjusted property EBITDA was up 35.4 per cent, reaching US$319m.
Positive projections for Las Vegas Sands’ EBITDA leverage include assumptions for the reinstatement of the common dividend, estimated to be approximately US$600m annually, commencing in the third quarter of 2023. Fitch expects the resumption of a Sands China distribution by 2025.
The optimistic outlook reflects increasing visitation and spending in Macau and Singapore. Fitch believes this upward trend will contribute to Las Vegas Sands’ return to investment-grade credit metrics. Nevertheless, the rating takes into account potential economic weaknesses in China and the competitive landscape in Macau due to new openings and facility expansions.
See also: Sands China in top 1% of S&P Global Ratings ranking for ESG performance in China
