Macau casino operator MGM China Holdings Ltd said in a note on Monday that its credit outlook was updated from “negative” to “stable” by Moody’s Investors Service.
“MGM China has experienced continued improvements in Macau, which has accelerated significantly over the past 12 months,” Moody’s said.
MGM China said in its February announcement that its total revenue in 2023 grew to HK$24.68 billion ($3.16 billion), up 368.5% in 2022 and 108.4% of HK$22.77 billion in 2019, the pre-pandemic trading year.
The rating agency also identified MGM China’s senior unsecured bond rating as ‘B1’.
MGM China operates resorts MGM Macau and MGM Kotai (pictured) in China’s gambling hub.
MGM Resorts International, based in the U.S., owns a 55.95% stake.
Moody’s reaffirmed MGM Resort’s ‘B1’ corporate family rating ‘B1-PD’ bankruptcy probability ‘B1’ senior unsecured bonds ‘MGM Resort’ speculative grade liquidity rating ‘SGL-2’ unchanged.
Moody’s said, “The stable outlook for MGM Resorts and MGM China reflects the continued strong performance of the Company’s U.S. regional and Las Vegas operations, along with the recovery of its Macau operations.”
The agency added: “The stable outlook also includes good liquidity from the company with significant cash balances and revolver availability.”
MGM Resorts Chief Executive Officer and President Bill Hornbuckle said in the group’s latest fourth-quarter earnings release that MGM China “breaks 20%” in terms of Macau market share barriers in January.
Still, Moody’s provided guidance that parent MGM Resorts’ rating was “constrained” by the company’s “high leverage, including significant leases on its balance sheet.”
The agency added: “Moody’s expects MGM [resort] to actively pursue large integrated resort development projects that will result in increased leverage for some time until completing the project.”
The rating agency did not specify any projects. However, Mr. Hornbuckle mentioned at an investor forum last week that the group is looking to get a northern license in New York and plans for a non-casino hotel in Dubai, United Arab Emirates. The group is also developing Japan’s first casino resort located in Osaka and due to open in 2030.
BY: 실시간 바카라사이트