“The rating confirmation and stable outlook reflect our expectations that Las Vegas Sands’ financial leverage will improve significantly over the next two years, as the Macau gaming market will recover strongly after China recently lifted pandemic-related travel restrictions,” Moody’s said.
It also added: “Macao’s expected recovery will be combined with the recovery already underway in Singapore to support revenue and EBITDA growth and lower leverage.”
Las Vegas Sands also operates Marina Bay Sands Casino Resort in Singapore. Last month, Casino Group said it had received permission from Singapore authorities to postpone the deadline to start the extension of Marina Bay Sands by 12 months.
Moody’s also said it incorporated its view into the “stable” outlook that “the liquidity of Las Vegas Sands will remain strong, with expectations that the availability of revolvers in Sands China will improve as cash flows improve and borrowing is repaid.”
Overall, Las Vegas Sands reported a profit of just over $1.83 billion for all of 2022, based on after-tax net income of nearly $2.9 billion, as it disposed of its operational operations in Las Vegas, Nevada. Sands China’s net loss in Macau was $1.58 billion in 2022, compared to $1.05 billion in 2021.
“The sale of Las Vegas operations further “improved the liquidity of Las Vegas Sands, while providing the flexibility to continue reinvesting in Macau and Singapore,” Moody’s said.
“The company’s liquidity is strong with $6.3 billion in consolidated cash and nearly $2.5 billion in unused revolving credit facility capacity,” it added.
Still, Las Vegas Sands’ financial leverage “will continue to rise for the foreseeable future as recovery is still in its early stages, and it will take time to return leverage to pre-pandemic levels,” the rating agency warned. 경마사이트프로
At the end of January, Las Vegas Sands revised certain term loans related to a $1.5 billion revolving credit agreement with bank partners. As part of the amendment, Casino Group faces restrictions on dividend payments by the end of 2023.
In a separate note, Moody’s said it expects Macau’s total gaming revenue (GGR) this year to be around 45% of the level in 2019, or the period before the start of the COVID-19 pandemic. The agency said the bulk market GGR could “improve by 75%” this year from 2019 levels and fully recover in 2024.
