Fitch lowers gaming sector growth forecast

The forecast for growth in gross casino gaming revenues in Macau casinos has been revised by the credit rating agency Fitch Ratings, with forecasts now showing a downward spiral from 10 percent to 4 percent, according to a statement issued last week in New York. The agency stated that its growth forecast of 10 percent, announced in mid-July, was already a downgrade from a previous forecast of 12 percent, but added that “the fundamentals of gaming remain stable in the long term.” Fitch Ratings projects increases in revenues for the mass gambling and slot machines segments – 15 percent and 5 percent, respectively – but a drop of 15 percent in the VIP segments, “which equates to losses of 3.5 percent per month until the end of the year, which is consistent with the last two months.” The forecast now announced by Fitch Ratings takes into account the forthcoming ban on smoking in casinos, which has required the installation of smoking rooms, as well as the anti-corruption campaign currently underway in mainland China and the gaming operators increased difficulties in obtaining credit.  MDT/Macauhub