MGM China Holdings' plans to issue senior unsecured notes is unlikely to materially affect the company's leverage and provides additional liquidity to MGM China, Fitch Ratings said in a note.
Colin Mansfield, an analyst with Fitch Ratings, spoke with Asia Gaming Brief's Managing Editor Sharon Singleton about the impact of the Covid crisis on the balance sheets and credit ratings of Asia's operators and the road to recovery.
Nine listed gaming operators in the Asia Pacific region are likely to see a plunge of about 70 percent in EBITDA this year, but all should have sufficient cash to cover basic needs for the next year, Moody’s Investors Service said.
Australian operator Crown Resorts is in a position to weather the storm created by the coronavirus crisis, due to its low debt and variable cost structure, according to Fitch Ratings.
Sands China says its lenders have agreed to amendments to a US$2 billion revolving credit facility to avoid being declared in default if some conditions are not met during the crisis.
Genting Singapore’s S$4.5 billion plan to expand its non-gaming attractions will only have a modest impact on its leverage and earnings and therefore its credit rating remains unchanged, Fitch Ratings said in a report.
Studio City Finance, a unit of Studio City International Holdings (SCIHL), said it will offer new senior notes to raise funds to redeem outstanding debt.
Genting is likely to see a decline of around 8 percent to 9 percent in group earnings before interest, tax, depreciation, amortization and rent/restructuring costs (EBITDAR) as a result of the Malaysian government’s decision to hike taxes in this year’s budget, though potential cost savings may offset the impact on the group’s financial profile, Fitch Ratings says.
Moody's Investors Service has put the credit rating of Mohegan Gaming & Entertainment, which is now mulling an IR bid in Tomakomai city and perhaps elsewhere, on review for a downgrade.