Fitch Ratings Inc has upgraded Las Vegas Sands Corp’s and its subsidiaries’ issuer default ratings to ‘BBB’, with a ‘stable’ outlook.
“The rating reflects improved credit metrics, strong performance in Singapore, and a continued but slightly weaker-than-expected rebound in the Macau market,” the institution said on a February 6 report.
“Las Vegas Sands benefits from its scale in Macau, competitive market positions in Macau and Singapore, and robust free cash flow generation,” it added. “This is offset by a relatively heavy capital programme and potential weakness in the Chinese economy.”
Fitch’s ‘BBB’ rating indicates good credit quality and low default risk, placing the entity within the investment-grade category, according to the rating agency.
Las Vegas Sands Corp runs the Marina Bay Sands complex (pictured) in Singapore via its Marina Bay Sands Pte Ltd subsidiary.
The group’s Macau unit, Sands China Ltd, operates five casino properties in Macau, including The Londoner Macao.
In its memo, Fitch said it had also upgraded the senior unsecured bonds and revolver at Las Vegas Sands and Sands China to ‘BBB’, and Marina Bay Sands Pte’s secured revolver and term loan to ‘BBB’.
In late January, Las Vegas Sands reported full-year 2025 net income of US$1.63 billion, up from US$1.45 billion in the previous year. Net revenues rose 15.2 percent year-on-year, to US$13.02 billion.
The group’s management highlighted the performance of Marina Bay Sands – in terms of earnings before interest, taxation, depreciation and amortisation (EBITDA) – as the key factor behind the improved results.
Marina Bay Sands recorded adjusted property EBITDA of US$2.92 billion last year, a 42.4-percent increase from 2024. That was on revenue that grew by 32.2 percent year-on-year, to US$5.59 billion.
The institution observed that the Marina Bay Sands complex “continues to generate a high level of EBITDA due to its high-quality asset, consistent reinvestment in the product, and high-valued customer base”.
But Fitch said it expects a “more modest rate of growth” for the property’s EBITDA going forward.
Nonetheless, it added, the “market continues to benefit from the strength of the Singapore economy, growth in tourist arrivals from other non-Chinese countries, and the eventual completion of the current property refresh programme”.
Macau ‘slowly’ adjusting
In Macau, full-year 2025 total net revenues for Sands China increased 5.1 percent year-on-year to US$7.44 billion, but net income was down, at US$901 million, compared to US$1.05 billion in 2024.
As per Fitch’s update, the casino group’s recent results in Macau “have been disappointing given the strong promotional environment, which was mainly self-inflicted”.
“Fitch expects EBITDA margins to remain in the low 30-percent range until the promotional environment improves,” the institution stated.
“The recovery in the base mass segment, particularly unrated play, has taken longer than expected,” it added.
Despite the challenges, Fitch believes Las Vegas Sands’ “large room base and amenities should allow the company to maintain market share and even grow over time” in the Macau market, anticipating “margins to improve when promotional spending abates”.
In the memo, Fitch estimated Las Vegas Sands’ 2025 EBITDA leverage at 3.3 times, and net EBITDA leverage at 2.5 times, “as well as similar levels over the forecast horizon”.
“Fitch believes Las Vegas Sands will manage its balance sheet in a manner consistent with investment-grade ratings, and the company has a strong track record of publicly articulating its leverage policy and adhering to prudent balance sheet management,” the document stated.
“Management has stated a gross target debt ratio of 2.0 times to 3.0 times before the impact of development projects,” the rating agency noted. “The company has a share repurchase program in place and recently announced a dividend increase, but free cash flow should be sufficient.”
