Moody’s affirms LVS, Sands China ratings as liquidity offsets spending risks

Las Vegas Sands (LVS) and its Macau subsidiary Sands China retained stable credit outlooks from Moody’s Ratings, with the agency citing strong liquidity and the likely earnings boost from the group’s USD8 billion expansion of Marina Bay Sands (MBS) in Singapore.

The ratings agency expects LVS to maintain debt at around the low-three-times range of earnings before interest, taxes, depreciation and amortization, or EBITDA, while funding major projects. Moody’s affirmed Las Vegas Sands’ Baa3 senior unsecured rating and Sands China’s Baa2 senior unsecured rating.

“The affirmations and stable outlooks reflect LVS’ strong liquidity, and our expectation that LVS will maintain debt/EBITDA in the low 3x range,” Moody’s said.

In July 2025, LVS broke ground on the MBS expansion, which will include a 570-suite hotel tower, new retail and gaming space, a spa and other facilities. LVS wrote in its investor presentation accompanying its 2Q26 earnings, “The Marina Bay Sands Expansion Project will complement and enhance the existing resort by introducing a new luxurious and exclusive hotel experience, a 15,000-seat arena, additional MICE capacity and entertainment offerings including premium gaming areas.”

Moreover, Moody’s said the IR2 project, once completed, would generate “a considerable amount of additional visitation” and, in turn, “considerable earnings and ability to reduce leverage.”

In the first half of 2026, MBS generated an adjusted property EBITDA margin of about 50%.

Sands China, by comparison, reported a 24% adjusted property EBITDA margin in the second quarter, down 7.5 percentage points from 31.5% a year earlier. Its adjusted EBITDA fell 24% year over year.

Moody’s also cited that LVS had $3.38 billion in unrestricted cash and cash equivalents as of June 30, as well as $4.26 billion in available borrowing capacity after outstanding borrowings and letters of credit. The group also has a $1.5 billion revolving credit facility maturing in April 2029, while Sands China has a roughly $2.5 billion facility due in October 2029.

MBS has access to about $4.68 billion under a $5.88 billion delayed-draw term loan facility. Moody’s said it expects the group to maintain ample liquidity, comply with debt covenants and manage upcoming maturities on time.

However, the agency said further integrated resort investment, dividends, share buybacks and secured borrowing for development could constrain the credit profile. A downgrade could follow if liquidity weakens, Macau’s earnings recovery falters or debt remains above three times EBITDA for an extended period.