{"id":24429,"date":"2021-11-11T12:27:06","date_gmt":"2021-11-11T15:27:06","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=24429"},"modified":"2026-04-23T13:56:33","modified_gmt":"2026-04-23T16:56:33","slug":"moodys-downgrades-melco-outlook","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/moodys-downgrades-melco-outlook","title":{"rendered":"Moody\u2019s downgrades Melco outlook"},"content":{"rendered":"\n

Analysts at Moody\u2019s Investors Service have assigned Melco Resorts a lower rating due to a slow recovery in earnings.<\/p>\n\n\n\n\n\n\n\n

Hong Kong.- The credit ratings agency\u00a0Moody\u2019s has downgraded Melco Resorts Finance Ltd\u2019s\u00a0<\/strong>corporate family rating and senior unsecured ratings from \u2018Ba2\u2019 to \u2018Ba3\u2019. It says Melco Resorts\u2019 adjusted debt, including lease liabilities, will increase from US$6.1bn at the end of 2020 to nearly US$7.6bn over the next 12 to 18 months.<\/p>\n\n\n\n

The ratings agency has also forecast that Macau mass-market GGR will reach only 60 per cent of pre-pandemic levels in 2022 and will not fully recover until 2023. Moody’s predicted that VIP gaming revenue would remain below 2019 levels in 2023 due to increasing regulatory scrutiny over the segment and the\u00a0weakened junket sector<\/a>.<\/p>\n\n\n\n

Analysts said: “The rating downgrade reflects our expectation that Melco group\u2019s debt levels and leverage metrics over the next few years will be substantially higher than pre-pandemic levels, because of the slow recovery in earnings amid lingering travel restrictions and sizeable capital spending.”<\/p>\n\n\n\n

Melco Resorts & Entertainment<\/a>\u00a0<\/strong>has reported\u00a0operating revenue of US$446.4m for the third quarter of the year<\/strong>. The figure was down 21 per cent from US$566.4m in the previous quarter but up 110 per cent year-on-year.<\/p>\n\n\n\n

The casino operator registered\u00a0GGR of US$402m, down 28 per cent\u00a0<\/strong>when compared to the previous quarter. Adjusted property EBITDA reached US$31.9m, compared to a negative US$76.7m last year.<\/p>\n","protected":false},"excerpt":{"rendered":"

Analysts at Moody\u2019s Investors Service have assigned Melco Resorts a lower rating due to a slow recovery in earnings.<\/p>\n","protected":false},"author":176,"featured_media":17574,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Moody's Investors Service has downgraded Melco Resorts Finance Ltd's corporate family rating from 'Ba2' to 'Ba3' due to an anticipated increase in adjusted debt to US$7.6bn and a slow recovery in Macau's GGR. The agency forecasts mass-market GGR will reach only 60% of pre-pandemic levels in 2022, with VIP gaming revenue remaining below 2019 levels in 2023 due to regulatory scrutiny and a weakened junket sector. This reflects concerns over Melco's leverage metrics amid lingering travel restrictions and significant capital expenditure.","focusai_entities":"Moody\u2019s Investors Service, Melco Resorts, Melco Resorts Finance Ltd, Melco Resorts & Entertainment","focusai_location":"Hong Kong, Macau","focusai_target_profile":"ceo_executive (0.9), regulator (0.7), operator_casino (0.95), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Melco Capex Impact?","query":"What specific capital expenditure projects are contributing to Melco's increased debt burden amidst a slow GGR recovery, and what is their projected ROI?"},{"label":"Macau VIP Regulatory Outlook?","query":"How might the 'increasing regulatory scrutiny' on the VIP segment in Macau further impact Melco's operational strategy and market share in 2023 and beyond, particularly concerning junket operations?"}],"footnotes":""},"categories":[157,16338],"tags":[18488],"class_list":["post-24429","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","tag-melco-resorts"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/24429","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=24429"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/24429\/revisions"}],"predecessor-version":[{"id":24450,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/24429\/revisions\/24450"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/17574"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=24429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=24429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=24429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}