{"id":777042599,"date":"2026-05-25T07:30:20","date_gmt":"2026-05-25T10:30:20","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=777042599"},"modified":"2026-05-25T09:42:53","modified_gmt":"2026-05-25T12:42:53","slug":"fitch-downgrades-sjm-holdings-amid-slower-recovery-concerns","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/fitch-downgrades-sjm-holdings-amid-slower-recovery-concerns","title":{"rendered":"Fitch downgrades SJM Holdings amid slower recovery concerns"},"content":{"rendered":"\n

The ratings agency lowered the Macau operator\u2019s long-term issuer default rating to B+ from BB-.<\/p>\n\n\n\n\n\n\n\n

Macau.- Fitch Ratings<\/strong> has downgraded the Long-Term Foreign-Currency Issuer Default Rating of SJM Holdings<\/strong> to B+ from BB-<\/strong>, while maintaining a stable outlook. It said the downgrade reflects expectations that leverage will remain above the thresholds previously associated with its BB- rating over the next two years.<\/p>\n\n\n\n

Meanwhile, the agency forecasts EBITDA leverage to improve to 7.8x in 2026 and 6.5x in 2027, down from more than 9x in 2025, but still significantly above its previous downgrade threshold of 5.0x.<\/p>\n\n\n\n

\u201cSJM\u2019s overall market share fell to 9.6 per cent in 1Q26, below our previous assumption of 10.7 per cent for 2026,\u201d Fitch said, while noting that the company is seeking to recover share by increasing use of returned satellite tables and opening new gaming areas at GLP and Casino Lisboa.<\/p>\n\n\n\n

The agency expects EBITDA growth to be supported by improved margins after the end of the low-margin satellite casino model, as well as contributions from self-operated casinos, including the recently acquired Casino L\u2019Arc<\/a>. Fitch forecasts adjusted EBITDA of HKD3.7bn in 2026 and HKD4.2bn in 2027, compared to HKD3bn in 2025.<\/p>\n\n\n\n

However, Fitch warned that GLP\u2019s contribution is likely to remain limited amid a highly competitive environment and product offering constraints. The report noted that mass gaming volume growth at GLP slowed to 3 per cent year-on-year in the fourth quarter of 2025 and declined 1 per cent year-on-year in the first quarter of 2026<\/a>.<\/p>\n\n\n\n

Fitch expects Macau\u2019s gross gaming revenue to grow 5 per cent in 2026 and 2 per cent annually from then on. It expects SJM\u2019s market share to remain between 9.7 per cent and 9.8 per cent through 2028.<\/p>\n\n\n\n

Despite the downgrade, Fitch said SJM\u2019s liquidity position remains adequate. The company refinanced bonds maturing this year through a US$540m senior notes issuance<\/a> and expanded syndicated loan facilities, while maintaining available cash and undrawn revolving credit lines sufficient to cover upcoming maturities.<\/p>\n\n\n

\n\t\t\tSee also:<\/span><\/p>\n
\n\t\t\t\t\"\"<\/p>\n

\n\t\t\t\t\tSee also:<\/span> Moody\u2019s downgrades SJM Holdings and revises outlook<\/a>\n\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>","protected":false},"excerpt":{"rendered":"

The ratings agency lowered the Macau operator\u2019s long-term issuer default rating to B+ from BB-.<\/p>\n","protected":false},"author":226,"featured_media":777029775,"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 downgraded SJM Holdings' Long-Term Issuer Default Rating to B+ from BB-, citing expectations of sustained high leverage above previous thresholds and a decline in market share. Despite efforts to recover share and projected EBITDA growth, competitive pressures in Macau's gaming market are expected to limit contributions from key properties.","focusai_entities":"Fitch Ratings, SJM Holdings, Moody\u2019s, GLP, Casino Lisboa, Casino L\u2019Arc","focusai_location":"Macau","focusai_target_profile":"ceo_executive (0.9), regulator (0.7), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"SJM Leverage Strategy?","query":"What specific deleveraging strategies is SJM Holdings implementing to reduce its EBITDA leverage below Fitch's 5.0x downgrade threshold, and what is the projected timeline for achieving this?"},{"label":"Macau Market Share Impact?","query":"How will SJM Holdings' strategy of increasing satellite table utilization and opening new gaming areas at GLP and Casino Lisboa impact its market share trajectory in Macau's highly competitive GGR environment through 2028?"}],"footnotes":""},"categories":[16338,163],"tags":[24619,17703,23108],"class_list":["post-777042599","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-east-asia-news","category-finance-news","tag-finance","tag-fitch-ratings","tag-sjm-holdings"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777042599","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\/226"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777042599"}],"version-history":[{"count":4,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777042599\/revisions"}],"predecessor-version":[{"id":777042638,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777042599\/revisions\/777042638"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/777029775"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777042599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777042599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777042599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}