Macau casinos will take time to deleverage, analysts say

Macau casinos will take time to deleverage, analysts say

Fitch Ratings says slow debt reduction efforts limit rating potential.

Macau.- Analysts at Fitch Ratings have noted that ratings for casino operators will be affected be slow deleveraging despite positive business prospects. While improvements in visitation and gaming revenue are anticipated to help debt reduction, analysts cautioned that some operators have a long way to go due to high leverage.

The report comes following the Chinese New Year trade, when visitor arrivals to Macau reached almost 1.36 million. Analysts at JP Morgan have recently said they expect that Macau’s GGR for February will be up by 80 per cent in year-on-year terms, to MOP19bn (US$2.36bn).

Fitch expressed optimism regarding the rest of the year, predicting a steady increase in inbound tourism and shifting consumer preferences towards service-oriented industries. However, analysts noted that the VIP gaming segment is facing a slower rebound, influenced by regulatory changes in China’s gaming tourism policies and broader economic challenges. 

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