{"id":27410,"date":"2022-02-21T07:23:11","date_gmt":"2022-02-21T10:23:11","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=27410"},"modified":"2026-04-23T11:11:33","modified_gmt":"2026-04-23T14:11:33","slug":"fitch-downgrades-sjm-holdings-default-rating","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/fitch-downgrades-sjm-holdings-default-rating","title":{"rendered":"Fitch downgrades SJM Holdings default rating"},"content":{"rendered":"\n<p>Fitch Ratings has downgraded SJM Holding\u2019s senior unsecured rating from BB+ to BB.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p>Macau.- Analysts at Fitch Ratings Inc have downgraded<strong>\u00a0SJM Holdings Ltd\u2018s senior unsecured rating<\/strong>\u00a0mainly due to regulatory uncertainty and the slow execution of new loans.<\/p>\n\n\n\n<p>Analysts stated: \u201cThe downgrade is because the company has been slower than we expected in&nbsp;<a target=\"_blank\" href=\"https:\/\/focusgn.com\/asia-pacific\/fitch-downgrades-ratings-for-three-macau-casino-operators\" rel=\"noreferrer noopener\">obtaining a new HK$19bn (US$2.4bn) long-term syndicated loan facility<\/a>&nbsp;to repay existing loans due 28 February 2022, although most banks have agreed to extend the existing loans by a year.&nbsp;<\/p>\n\n\n\n<p>&#8220;Material regulatory uncertainty also remains over SJMH\u2019s gaming concession in Macau as its 20-year term is set to expire on 26 June 2022.&#8221;<\/p>\n\n\n\n<p>On February 10,\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/focusgn.com\/asia-pacific\/moodys-downgrades-sjm-holdings-ratings\" target=\"_blank\">Moody\u2019s Investors Service<\/a>\u00a0downgraded SJM Holdings Ltd\u2019s corporate family rating from Ba1 to Ba2. Moody\u2019s \u201cBa\u201d rating indicates<strong>\u00a0a \u201cspeculative grade\u201d for credit quality<\/strong>. According to analysts, the main reason for the downgrade was SJM\u2019s persistent delay in executing its refinancing plan which has raised concerns about its financial and liquidity management.<\/p>\n\n\n\n<p>Analysts forecast that SJM\u2019s EBITDA [earnings before interest, taxation, depreciation and amortisation] will return to 2019 levels by 2024 while the company&#8217;s Grand Lisboa Palace EBITDA will be HK$2.0bn in 2023 and HK$3.5bn in 2024.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Fitch Ratings has downgraded SJM Holding\u2019s senior unsecured rating from BB+ to BB.<\/p>\n","protected":false},"author":176,"featured_media":19388,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Fitch Ratings and Moody's Investors Service have downgraded SJM Holdings' credit ratings, citing significant regulatory uncertainty surrounding its Macau gaming concession renewal and persistent delays in securing a HK$19bn syndicated loan facility. These downgrades reflect concerns over the company's financial and liquidity management, despite banks agreeing to extend existing loans.","focusai_entities":"Fitch Ratings, SJM Holdings Ltd, Moody\u2019s Investors Service, Grand Lisboa Palace","focusai_location":"Macau","focusai_target_profile":"ceo_executive (0.9), regulator (0.8), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Concession Renewal Impact","query":"What specific changes in Macau's gaming regulatory framework or concession renewal terms could further impact SJM Holdings' financial viability and credit profile?"},{"label":"Refinancing Strategy","query":"What are the specific impediments to SJM Holdings' execution of its HK$19bn syndicated loan facility, and what alternative financing strategies are available to mitigate immediate liquidity risks?"}],"footnotes":""},"categories":[157,16338],"tags":[23108],"class_list":["post-27410","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","tag-sjm-holdings"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/27410","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=27410"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/27410\/revisions"}],"predecessor-version":[{"id":27417,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/27410\/revisions\/27417"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/19388"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=27410"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=27410"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=27410"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}