{"id":777049683,"date":"2026-11-12T08:39:43","date_gmt":"2026-11-12T11:39:43","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=777049683"},"modified":"2026-11-12T08:40:00","modified_gmt":"2026-11-12T11:40:00","slug":"sjm-holdings-moodys-credit-rating-debt","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/sjm-holdings-moodys-credit-rating-debt","title":{"rendered":"Moody\u2019s downgrades SJM again as debt pressures mount"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Weak earnings and upcoming refinancing needs have raised concerns over the Macau operator\u2019s ability to meet its financial obligations.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Key takeaways:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Moody\u2019s lowered SJM Holdings\u2019 rating to B2 from B1, its second downgrade in six months.<\/li>\n\n\n\n<li>The agency also downgraded subsidiary bond ratings to B3 from B2 and changed the outlook to negative.<\/li>\n\n\n\n<li>SJM faces HKD1.9bn (US$242m) in convertible bonds that holders can require it to repurchase in June 2027, and US$500m in notes due in January 2028.<\/li>\n\n\n\n<li>Moody\u2019s considers SJM\u2019s liquidity weak, with cash and operating cash flow insufficient to cover debt payments and capital expenditure over the next 12 to 18 months.<\/li>\n\n\n\n<li>SJM recently reported a third-quarter loss after gaming revenue fell more than 27 per cent.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Macau.- Moody\u2019s has downgraded Macau casino operator<strong> SJM Holdings<\/strong> for the second time in six months. The agency has lowered the company\u2019s rating to B2 from B1 and <strong>shifted the outlook to negative from stable<\/strong>. It also cut the ratings on bonds issued by SJM\u2019s subsidiaries to B3 from B2.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The agency cited SJM\u2019s debt levels, stating that weak earnings and slower growth in Macau\u2019s casino market had left the company with higher leverage than expected. It says the company\u2019s cash and operating cash flow will not be enough to cover upcoming debt payments and capital spending over the next 12 to 18 months.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Key obligations include bank loans coming due, HKD1.9bn (US$242m) of convertible bonds that holders can force the company to buy back in June 2027, and US$500m of notes due in January 2028.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe negative outlook reflects the uncertainty regarding the pace of deleveraging and the company\u2019s significant refinancing needs over the next one to two years, which could weaken liquidity,\u201d said <strong>Stephanie Lau<\/strong>, a senior vice president at Moody\u2019s.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">SJM runs Grand Lisboa, Grand Lisboa Palace. It <a href=\"https:\/\/focusgn.com\/asia-pacific\/sjm-q3-results-ebitda\" data-type=\"link\" data-id=\"https:\/\/focusgn.com\/asia-pacific\/sjm-q3-results-ebitda\" target=\"_blank\" rel=\"noopener\">posted a third-quarter loss<\/a> after gaming revenue fell more than 27 per cent. Moody\u2019s said it could cut the rating again if SJM does not make clear progress on refinancing in the coming months or if earnings recover more slowly than expected.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Frequently asked questions (FAQs)<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Why did Moody\u2019s downgrade SJM Holdings?<\/strong> Moody\u2019s cited SJM\u2019s high debt levels, weak earnings and slower growth in Macau\u2019s casino market, which have resulted in higher leverage and increased refinancing risks.<\/li>\n\n\n\n<li><strong>What is SJM Holdings\u2019 current credit rating?<\/strong> SJM Holdings has a B2 rating from Moody\u2019s, down from B1. The agency also assigned a negative outlook. Bonds issued by its subsidiaries were downgraded to B3 from B2.<\/li>\n\n\n\n<li><strong>How much debt does SJM Holdings need to refinance?<\/strong> Key obligations include HKD1.9bn (US$242m) in convertible bonds subject to a potential holder-forced buyback in June 2027 and US$500m in notes maturing in January 2028.<\/li>\n\n\n\n<li><strong>Could Moody\u2019s downgrade SJM Holdings again? <\/strong>Yes. Moody\u2019s said it could lower the rating further if SJM fails to make clear progress on refinancing in the coming months or if its earnings recover more slowly than expected.<\/li>\n<\/ul>\n\n\n<div id=\"see-also-container\">\n\t\t\t<span class=\"see-also-label\">See also:<\/span><\/p>\n<div class=\"related-article\">\n\t\t\t\t<img decoding=\"async\" class=\"related-article__thumbnail\" src=\"https:\/\/focusgn.com\/asia-pacific\/wp-content\/uploads\/sites\/5\/2021\/04\/Where-to-gamble-in-Asia-best-gambling-destinations-to-visit-300x200.jpg\" alt=\"\"><\/p>\n<p class=\"related-article__text\">\n\t\t\t\t\t<span class=\"see-also-label-strong\">See also:<\/span> <a href=\"https:\/\/focusgn.com\/asia-pacific\/macau-casinos-ebitda-ggr-costs\">Macau casinos face 11% EBITDA decline as costs rise, CLSA says<\/a>\n\t\t\t\t<\/p>\n<\/p><\/div>\n<\/p><\/div>","protected":false},"excerpt":{"rendered":"<p>Weak earnings and upcoming refinancing needs have raised concerns over the Macau operator\u2019s ability to meet its financial obligations.<\/p>\n","protected":false},"author":680,"featured_media":777034406,"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 has downgraded Macau casino operator SJM Holdings to B2 from B1, with a negative outlook, citing weak earnings, high debt levels, and insufficient liquidity to cover significant upcoming debt obligations. This second downgrade in six months highlights increased refinancing risk and slower-than-expected recovery in the Macau gaming market, raising concerns about the operator's financial stability.","focusai_entities":"SJM Holdings, Moody's, Stephanie Lau, CLSA, Grand Lisboa, Grand Lisboa Palace","focusai_location":"Macau","focusai_target_profile":"ceo_executive (0.9), operator_casino (0.9), regulator (0.7), investor_analyst (1.0), supplier_vendor (0.8), journalist_researcher (0.9)","focusai_suggestions":[{"label":"SJM Refinancing Strategy?","query":"What specific refinancing strategies is SJM Holdings pursuing to address the HKD1.9bn convertible bonds and US$500m notes, and what is the projected timeline for securing these arrangements to mitigate further credit deterioration?"},{"label":"Macau Market Impact?","query":"How might SJM's weakened financial position and the broader Macau market slowdown impact the competitive landscape, potential M&A activities, and the long-term concessionaire stability in the region?"}],"footnotes":""},"categories":[157,16338],"tags":[257,25232,23108],"class_list":["post-777049683","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","tag-macau","tag-moodys","tag-sjm-holdings"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777049683","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\/680"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777049683"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777049683\/revisions"}],"predecessor-version":[{"id":777049692,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777049683\/revisions\/777049692"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/777034406"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777049683"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777049683"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777049683"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}