Macao operators are at risk of falling

Moody’s said in Thursday’s update that the “downside risk” of the Macau casino market recovery was “significant.” Moody’s said the “slower-than-expected recovery” in casino gross game revenue (GGR) is “a key risk, especially for companies operating only in Macau.”

Such a scenario “may arise mainly because travel restrictions persist and are closed amid the resurgence of the [COVID-19] pandemic,” the rating agency added. 온라인경마

“GGR in the bulk sector, a major contributor to game operators’ profits and cash flows, will improve to 70% in 2023 after remaining roughly flat from 30% of 2019 levels this year,” said Gloria En, Moody’s vice president and chief credit officer. “A full recovery in the bulk sector is only possible in 2024, which will lead to significant improvements in operators’ credit indicators,” she added.

However, the agency warned that in its downward scenario, it assumed that “the bulk GGR would return to 60% of pre-pandemic levels in 2023 and 80% in 2024.”

As a result, Macau-focused operators’ credit indicators will be “very weak by 2024 and their ratings will be under upward pressure,” the rating agency added.

Official data showed Macau’s GGR in 2019, the last year of pre-pandemic trading, was almost MOP 292.46 billion ($36.17 billion at the current exchange rate).

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