Gaming | Fitch Ratings still confident in Macau

Unlike other rating agencies, Fitch Ratings is still optimistic about Macau’s long-term business future, saying that business should pick up in the second half of the year. “While the recent operating declines are concerning, we are encouraged by the fact that the long-term fundamentals for the higher-margin, lower-volatility mass business remain intact,” the analysts said. The agency projects that Macau’s gaming revenue will slide by 4% in 2015, a figure that, Fitch says, would represent “mild sequential improvement throughout the first half of 2015 relative to the last quarter of 2014”. Gaming revenues would also be aided by the opening of Galaxy Macau and Melco’s Studio City’s expansion projects. Fitch Ratings added that while dividends may have to be cut as a result of the stagnating numbers, it remains “hopeful that the six casino operators are all in a good enough financial position to withstand the lower revenues.” Deutsche Bank predicted earlier in the week that gross gambling revenue in Macau would sink by 30% in 2015, a staggering forecast that has blown its initial 13% forecast completely out of the water.