SCHYY - Las Vegas Sands is dropped a ratings notch by S&P Global due to slow Macau recovery

S&P Global Ratings lowered the issuer credit rating on Las Vegas Sands (LVS +0.1%) and subsidiary Sands China (OTCPK:SCHYY +4.2%) to BB+ from BBB-. The ratings agency warned that a slower recovery in Macau in 2022 will cause LVS's leverage to reach about 7X at the end of this year, which stands about the 4X downgrade threshold at the previous BBB- rating level. "We revised our base-case forecast for Macau because we believe that the resumption of travel between Macau and Mainland China in 2022 will be slower than we initially anticipated amid rising Omicron cases and tightening junket activity. We believe the mass gaming segment will recover over the long term given China's growing middle class's high propensity to game, improving infrastructure between Mainland China and Macau, and expanding hotel supply. However, the predictability of the recovery timeline is less certain because it's difficult to assess if China will maintain

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Las Vegas Sands is dropped a ratings notch by S&P Global due to slow Macau recovery