[ET Net News Agency, 30 January 2020] The Wuhan Coronavirus outbreak will negatively
affect the cash flow of gaming and lodging companies exposed to the Asia-Pacific region,
according to an S&P Global Ratings report.
The report says that companies likely to be the most negatively affected by the virus
are gaming companies that derive a large percentage of their cash flow from casinos
located in Macau and other Asia-Pacific gaming markets reliant on Chinese visitation.
The outbreak will also adversely impact lodging companies that operate a material
percentage of their rooms in China and the greater Asia-Pacific region, though to a lesser
extent, it said.
"Macau is the most exposed gaming market to the spread of the coronavirus," said Emile
Courtney, an analyst at S&P. "Other gaming markets in the Asia-Pacific region, such as
Singapore, Cambodia, the Philippines, and Australia, also heavily rely on Chinese
visitation and will experience some cash flow disruption. For example, Singapore derives
about 20% of its total tourist visitation from mainland China." (KL)