{"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<p>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<!--more-->\n\n\n\n<p>Hong Kong.- The credit ratings agency\u00a0<strong>Moody\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<p>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&#8217;s predicted that VIP gaming revenue would remain below 2019 levels in 2023 due to increasing regulatory scrutiny over the segment and the\u00a0<a rel=\"noreferrer noopener\" target=\"_blank\" href=\"https:\/\/focusgn.com\/asia-pacific\/junkets-request-details-on-macaus-proposed-new-gaming-laws\">weakened junket sector<\/a>.<\/p>\n\n\n\n<p>Analysts said: &#8220;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.&#8221;<\/p>\n\n\n\n<p><a rel=\"noreferrer noopener\" target=\"_blank\" href=\"https:\/\/focusgn.com\/asia-pacific\/melco-resorts-posts-us446-4m-in-operating-revenue-for-q3\">Melco Resorts &amp; Entertainment<\/a><strong>\u00a0<\/strong>has reported\u00a0<strong>operating 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<p>The casino operator registered<strong>\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":"<p>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}]}}