Fitch upgrades LVS rating on Singapore strength, expects Macau rebound

Fitch Ratings has upgraded Las Vegas Sands Corp. and its subsidiaries’ issuer default ratings to “BBB” from a lower tier, citing strong performance in Singapore and a steady, if slower-than-expected, recovery in Macau.

The upgrade, announced late last week, carries a stable outlook. It also reflects stronger credit metrics amid standout results from the Marina Bay Sands integrated resort, which offset “potential weakness in the Chinese economy” and “a relatively heavy capital program,” Fitch states.

Fitch praised the Singapore property’s “high-quality asset, consistent reinvestment in the product, and high-value customer base.”

Full-year 2025 results show Marina Bay Sands’ net income climbed to USD1.63 billion, up from $1.45 billion in 2024, on revenues that rose 15.2% to $13.02 billion.

Fitch also highlighted the IR2 expansion at Marina Bay Sands, which LVS broke ground on in July.

The project is estimated to cost about $8 billion and open in early 2031. Analysts note the initiative underscores LVS’ long-term commitment to Singapore.

“The market continues to benefit from the strength of the Singapore economy, growth in tourist arrivals from other non-Chinese countries, and the eventual completion of the current property refresh program,” Fitch remarked.

The IR2 project, funded by the MBS credit facility and Free Cash Flow (FCF) from existing operations, will add 570 luxury suites, a 15,000-seat arena, and expanded meeting and convention space.

Macau Performance

Turning to Macau, Fitch described the recent results there as “disappointing given the strong promotional environment, which was mainly self-inflicted.”

It forecasts EBITDA margins holding in the low 30% range until promotions ease, with the base mass segment – especially unrated play – recovering slower than hoped.

Nevertheless, Fitch expects LVS’ extensive room inventory and amenities in Macau to sustain or grow market share as spending normalizes and margins improve.

Financial Path

Fitch states that it believes operations and incentives are heavily intertwined among all three entities. “SCL and MBS have historically relied on parent equity support to fund development programs, which has allowed these entities to return capital to the U.S. parent through distributions following the completion of these developments.”

“The company has unrestricted cash balances of $3.84 billion as of Dec. 31, 2025, and $3.66 billion of availability under its various credit facilities.”

“In addition, the U.S. parent holds a $1.2 billion seller note following the sale of its Las Vegas assets, which matures in 2028,” noted Fitch.

Balance sheet

Fitch projects 2025 EBITDA leverage at 3.3 times and net leverage at 2.5 times, stable through the forecast period.

The ratings agency maintains a track record of disciplined management, targeting a gross debt ratio of 2.0 to 3.0 times pre-development projects.

The “BBB” rating signals good credit quality and low default risk, placing the company firmly in investment-grade territory. Fitch also lifted ratings on Las Vegas Sands’ senior unsecured bonds and revolver, Sands China’s equivalents, and Marina Bay Sands Pte.’s secured facilities to “BBB.”

LVS operates MBS through its subsidiary Marina Bay Sands Pte. Ltd. and runs five integrated resorts in Macau through its subsidiary Sands China Ltd.