The company has revealed in its annual report for 2021 that it paid MOP47m (US$6m) for the six-month extension of its current concession.
Macau.- MGM China’s annual report shows that it paid US$6m for the six-month extension on its Macau casino licence. Like Wynn Macau Ltd, Melco International Development Ltd and Sands China Ltd, it also confirmed that it had to pledge to provide bank guarantees to cover possible employee dismissals.
All six of Macau’s casino operators have applied to extend their current licences pending a new public tender to be held later in the year. The current licences are to expire in June, but last month Lei Wai Nong, Macau’s secretary for economy and finance, confirmed that licences would be extended until December 31.
The extension of the licenses gives the Macau government time to prepare for an open tender for new Macau gaming licences. In its report, MGM China noted that the Macau government “did not say” when the new public tender would take place.
Macau’s gaming law amendment bill, which is still being debated, would allow up to six gaming concessions with a length of 10 years and the possibility of a 3-year extension. A final reading of the gaming law amendment bill is expected by June.
Moody’s downgrades MGM Resorts Corporate Family Rating to B1
Moody’s Investor Services has downgraded the corporate family rating of MGM Resorts International due to a slower economic recovery in Macau and the company’s likely high debt levels. The decision includes a downgrade in MGM’s Probability of Default Rating from Ba3-PD to B1-PD and a downgrade of the company’s senior unsecured debt from Ba3 to B1.
MGM China Holdings Ltd’s senior unsecured debt was also downgraded from Ba3 to B1. However, despite a slower than expected recovery in Macau, analysts noted a strong recovery in the company’s regional and Las Vegas operations and expect earnings from these to remain in line with its benchmark economic guidance.