Quote | Super Quote
Super Quote   |   Detail Quote   |   Interactive Chart   |   Transaction   |   Related News   |   Related Securities   |   Company Information   |   Dividend Records   |   Short Sell
01128 WYNN MACAU
RTNominal up6.990 +0.080 (+1.158%)
Others

24/06/2020 15:11

APAC gaming firms' leverage seen to stay elevated - Moody's

[ET Net News Agency, 24 June 2020] Moody's Investors Service said in a new report that
the coronavirus pandemic has severely hit the earnings of APAC gaming companies, keeping
their leverage elevated. But most have sufficient liquidity to weather the storm.
"Falling international travel, property closures and the ongoing social distancing
measures will keep the gaming sectors' prospects weak until at least 2021. We expect that
the combined EBITDA of gaming companies with exposure to APAC will fall around 70% in 2020
before gradually recovering in 2021," said Jacintha Poh, a Moody's Vice President and
Senior Credit Officer.
Despite the bleak outlook, most rated companies have sufficient liquidity to meet their
cash needs and debt payments over the next 12 months. Genting Singapore Limited (A3
negative) has the largest liquidity buffer, likely sufficient for more than three years.
But on the other end of the scale, the liquidity of Studio City Finance Limited (B1
negative) will run out in less than a year.
Gaming companies' leverage will remain elevated in 2021 versus 2019, amid an increase in
debt to boost liquidity - e.g. since April five companies have raised a total of around
US$6.7 billion - as well as slow earnings recovery.
Moody's expects that operators in Malaysia (A3 stable) and Australia (Aaa stable) could
recover sooner because of their significant domestic customer base, whereas Macao SAR's
(Aa3 stable) recovery will rest on China's (A1 stable) resumption of the individual visa
scheme for Chinese citizens visiting the city.
Large expansionary capital spending will also constrain the pace of leverage recovery,
as most companies will likely continue their significant expansionary projects on the
expectation of an eventual sector recovery. As such, Moody's expects that some companies
will draw down project financing loans to complete ongoing developments, keeping debt
levels elevated. (KL)

Remark: Real time quote last updated: 28/03/2024 18:00
  Real-time basic market prices of Hong Kong securities are provided by HKEx; a Designated Website authorized by the HKEx Group to provide the Service
A Member of HKET Holdings
Customer Service Hotline:(852) 2880 7004     Customer Service Email:cs@etnet.com.hk
Copyright 2024 ET Net Limited. http://www.etnet.com.hk ET Net Limited, HKEx Information Services Limited, its Holding Companies and/or any Subsidiaries of such holding companies, and Third Party Information Providers endeavour to ensure the availability, completeness, timeliness, accuracy and reliability of the information provided but do not guarantee its availability, completeness, timeliness, accuracy or reliability and accept no liability (whether in tort or contract or otherwise) any loss or damage arising directly or indirectly from any inaccuracies, interruption, incompleteness, delay, omissions, or any decision made or action taken by you or any third party in reliance upon the information provided. The quotes, charts, commentaries and buy/sell ratings on this website should be used as references only with your own discretion. ET Net Limited is not soliciting any subscriber or site visitor to execute any trade. Any trades executed following the commentaries and buy/sell ratings on this website are taken at your own risk for your own account.