LVS credit rating bolstered by strong performance in Singapore amid slow Macau recovery

Fitch Ratings Inc. recently issued a memo indicating that the credit rating for Las Vegas Sands Corp. (LVS) remains at ‘BBB–’ with a ‘Stable’ outlook, despite a “slightly weaker-than-expected rebound” in the Macau casino market.

This, however, was counterbalanced by the “strong performance” seen in Singapore’s casino market, supporting the company’s overall position.

Fitch analysts David Kempf and David Lowenstein highlighted the LVS’ competitive positions in both Macau and Singapore, its robust free cash flow, and its large scale as key strengths.

These advantages, however, are tempered by the possibility of heavy capital investment and potential economic weakness in China.

Earlier this month, LVS revealed that the planned expansion of Marina Bay Sands would likely be completed by June 2030, with a targeted opening in January 2031. In October 2024, the company announced an USD8 billion investment in the second phase of the Marina Bay Sands development. LVS was also reported to be seeking an SGD12 billion loan to fund its Singapore expansion.

Meanwhile, Fitch noted that the stable outlook reflects rising visitation and spending in both Macau and Singapore.

The Macau gaming market had a strong start to 2024, although it slowed later in the year, likely due to the weakening Chinese economy.

The mass-market baccarat segment is near pre-pandemic levels, particularly in the premium mass market. However, the Macau VIP market is still below 2019 levels due to the disappearance of junket operations.

Staff Reporter