{"id":777012266,"date":"2024-01-05T10:23:50","date_gmt":"2024-01-05T13:23:50","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=777012266"},"modified":"2026-04-22T14:16:49","modified_gmt":"2026-04-22T17:16:49","slug":"fitch-upgrades-sjm-holdings-outlook-to-stable","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/fitch-upgrades-sjm-holdings-outlook-to-stable","title":{"rendered":"Fitch upgrades SJM Holdings outlook to “stable”"},"content":{"rendered":"\n

Fitch upgrades SJM Holdings to “stable”, citing robust gaming recovery and Grand Lisboa Palace’s impact.<\/p>\n\n\n\n\n\n\n\n

Macau.- Fitch Ratings<\/strong> has recently revised the outlook for SJM Holdings and upgraded its Long-Term Foreign-Currency Issuer Default Rating (IDR) from “negative”<\/a> to “stable”, with the company’s rating affirmed at ‘BB-‘. <\/p>\n\n\n\n

This positive shift is attributed to the resilient recovery observed in both visitation and gaming revenue within the Macau region, despite prevailing economic challenges in China.<\/p>\n\n\n\n

Fitch notes that the ongoing recovery, coupled with the continued growth of SJM’s latest venture, the integrated resort Grand Lisboa Palace<\/a> (GLP), is poised to enhance SJM Holdings’ leverage metrics. <\/p>\n\n\n\n

Projections indicate a significant upswing in earnings before interest, taxation, depreciation, and amortization (EBITDA) for SJM<\/strong>, with an anticipated increase from HK$1.7bn in 2023 to HK$3.6bn (US$461.1m) in 2024. The positive momentum is expected to persist, with Fitch forecasting further improvement in 2025 (HK$5.2bn) and 2026 (HK$6.6bn).<\/p>\n\n\n\n

According to the projections, SJM’s free cash flow (FCF) is expected to become positive in 2024, and then continue to grow in 2025-2026. This growth will lead to a reduction in the company’s debt balance from HK$29bn as of the end of September 2023, to HK$26bn by the end of 2025, and HK$23bn by the end of 2026.<\/p>\n\n\n\n

See also:<\/strong> SJM recognised as Certified Sustainable Development Corporation<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Fitch upgrades SJM Holdings to “stable”, citing robust gaming recovery and Grand Lisboa Palace’s impact.<\/p>\n","protected":false},"author":176,"featured_media":25400,"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 has upgraded SJM Holdings' outlook to \"stable\" from \"negative,\" affirming its 'BB-' IDR, driven by Macau's robust gaming and visitation recovery. This positive revision is attributed to the strong performance of Grand Lisboa Palace and projected improvements in SJM's leverage metrics, with significant EBITDA growth and positive free cash flow anticipated through 2026.","focusai_entities":"Fitch Ratings, SJM Holdings, Grand Lisboa Palace","focusai_location":"Macau, China","focusai_target_profile":"ceo_executive (0.9), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"GLP's Market Share?","query":"How is Grand Lisboa Palace's specific contribution to SJM Holdings' GGR and NGR impacting its competitive positioning against other Macau concessionaires, particularly in the premium mass and VIP segments?"},{"label":"Debt Reduction Strategy?","query":"What are the specific capital allocation priorities for SJM Holdings following the projected free cash flow generation, and how will this influence further debt reduction versus potential reinvestment or shareholder returns?"}],"footnotes":""},"categories":[157,16338],"tags":[23108],"class_list":["post-777012266","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\/777012266","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=777012266"}],"version-history":[{"count":1,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777012266\/revisions"}],"predecessor-version":[{"id":777012267,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777012266\/revisions\/777012267"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/25400"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777012266"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777012266"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777012266"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}