S&P expects Macau mass market GGR to recover to 75-85% of 2019 levels

S&P Global Ratings has revised its outlook for Macau’s mass-market gross gaming revenue.

Macau.- S&P Global Ratings Inc. has predicted that Macau’s mass-market gross gaming revenue (GGR) could reach between 75 per cent to 85 per cent of 2019 levels. That’s a significant upgrade from the previous forecast, which anticipated 60 per cent of 2019 levels. 

The rating agency attributed the change to the faster-than-expected recovery in visitation and GGR at Macau’s casinos. Analysts expect mass GGR to achieve full recovery in 2024. VIP GGR is projected to remain at 20 per cent to 25 per cent of 2019 levels throughout 2023. 

April was the best month for GGR since January 2020, before the Covid-19 pandemic began. At MOP14.72bn (US$1.83bn), GGR was up 15.6 per cent month-on-month and 449.9 per cent when compared to last year.

GGR for the first four months of the year was MOP46.36bn (US$5.75bn), approximately half of pre-pandemic levels. Mass GGR recovered to 67 per cent and VIP GGR to 23 per cent. 

 S&P updates Macau casino operators outlook

Several casino operators in Macau have received positive updates on their ratings from S&P. Las Vegas Sands Corp and its Macau unit Sands China, along with Wynn Resorts Ltd and its subsidiaries including Wynn Macau, had their rating outlook upgraded from negative to positive. S&P affirmed BB+ issuer credit ratings for Las Vegas Sands and Sands China.

It noted that Wynn Resorts has the potential to reduce its leverage significantly by the end of 2023, while Melco Resorts & Entertainment’s operating subsidiaries, Melco Resorts (Macau), Studio City Co and MGM Resort’s rating outlooks were revised from negative to stable.