Revenue drop with impact on credit analysis: Moody’s

Declining gaming revenues in Macau are credit negative for the local economy, according to a report by credit rating agency Moody’s.
“The gaming revenue downturn is negative for the government regarding the credit analysis, since the gaming industry has a central role in public financing,” the report, cited by Lusa, reads.
Nevertheless, the rating agency highlights that the MSAR has the financial resources to counter the gaming revenue drop.
“The diminishing gaming industry revenue will hinder the economy and public finance, but the lack of public debt and the high [monetary] reserves offer a confortable ‘pillow’ that is sufficient,” Moody’s says.
The agency predicts that the slowdown in gaming revenues is expected to continue, as long as the anti-graft campaign in China continues. Moreover, Moody’s says that the gaming industry is still “maturing.” The available economic data indicates that the gaming industry stands for 46 percent of the Gross Domestic Product, followed by the real estate sector, which represents 9 percent of the local economy.  MDT/Lusa