Moody’s upgrades Las Vegas Sands outlook on Macau expectations

Moody’s has also confirmed its Baa3 rating for Las Vegas Sands and Baa2 rating for Sands China.

Macau.- Moody’s Investors Service has upgraded its outlook for Las Vegas Sands from “negative” to “stable.” It’s also confirmed its Baa2 rating for Las Vegas Sands Corp and its Baa2 rating for Macau-based Sands China.

The agency said it expects Las Vegas Sands’ financial leverage to improve significantly over the next two years as the Macau gaming market recovers following China’s lifting of pandemic-related travel restrictions. Moody’s noted that the expected recovery in Macau, coupled with the recovery already underway in Singapore, will support revenue and earnings growth and drive leverage down.

Analysts said the “stable” outlook incorporated the view that Las Vegas Sands’ liquidity will remain strong with the expectation that the company will improve its revolver availability at Sands China as cash flow improves and borrowings are repaid. Nonetheless, Moody’s warned that Las Vegas Sands’ financial leverage “will remain elevated over the near term,” and that it will take time to bring leverage back towards pre-pandemic levels. 

In a separate note, Moody’s reported that it expects Macau’s gross gaming revenue (GGR) to reach about 45 per cent of 2019’s level this year. Mass-market GGR could “improve to 75 per cent of 2019 levels” and fully recover in 2024. 

In March, Las Vegas Sands said it had been authorised by Singaporean authorities to delay the deadline for the extension of Marina Bay Sands’ construction work by 12 months. The completion deadline is now April 8, 2028.