Fitch Ratings has assigned a ‘BB-’ rating to SJM Holdings Limited’s (SJMH) proposed senior unsecured notes, with a Negative Outlook. The notes, to be issued by SJMH’s wholly owned subsidiary SJM International Limited, will be unconditionally guaranteed by SJMH and rank pari passu with the company’s other senior unsecured borrowings.
The Negative Outlook reflects uncertainty over SJMH’s deleveraging, amid weak growth at Grand Lisboa Palace (GLP) and market share losses from satellite casino closures and restructuring. Fitch expects leverage to improve to within the BB- threshold by 2027, assuming continued free cash flow and debt reduction.
Operational challenges include GLP’s slow ramp-up, a 5% year-on-year GGR decline in 3Q25, and the need to recapture satellite casino market share. SJMH has reallocated gaming tables and staff to self-owned properties and secured new bank loans to support the proposed bond issuance and cover maturing debt, with liquidity buffers including a HKD3.1 billion undrawn revolver.
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