• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

MGM China incremental debt is credit negative: Moody’s

Mar 25, 2021 Newsdesk Latest News, Macau, Top of the deck  


MGM China incremental debt is credit negative: Moody’s

Moody’s Investors Service Inc says that the “incremental debt” from a planned offering of senior unsecured notes by Macau casino operator MGM China Holdings Ltd is “credit negative” for that firm. Nonetheless, the additional liquidity “is beneficial to improve flexibility to manage in the current weak operating environment,” stated the ratings agency.

MGM China announced on Thursday plans to issue US$750 million in aggregate principal amount of 4.75-percent senior notes, due February 1, 2027. The company said it expected net proceeds of about US$741 million from the exercise.

MGM China said it intends to use the net proceeds to “repay a portion of the amounts outstanding under its revolving credit facility and for general corporate purposes.”

MGM China is 56-percent owned by United States-based casino operator MGM Resorts International.

The ratings agency assigned a ‘Ba3’ rating to MGM China’s senior notes. Corporate financial obligations in the ‘Ba’ grouping are of non-investment grade, and are considered to have “speculative elements and are subject to substantial credit risk”.

Moody’s said nonetheless it affirmed the Ba3 corporate family rating “because MGM and MGM China have good liquidity to manage through temporary operating weakness” related to the Covid-19 pandemic.

As of December 31, MGM China had cash and cash equivalents of HKD2.6 billion (approximately US$340 million). The company also had available capacity of HKD6.0 billion under existing revolving credit facilities.

“Moody’s expects visitation and earnings to improve over the next year, and that debt-to-earnings before, interest, taxation, depreciation and amortisation leverage will decline to below 6.0 times within a reasonable period of time,” it stated.

It added: “The company’s properties also have strong market positions and brands that will attract sizeable volume and generate good operating cash flow once the coronavirus-related disruptions subside.”

(Updated at 10am, March 26)


  • tweet
Related articles
  • Macau ops share junket deposit liability: Macau top court
    Macau ops share junket deposit...

    May 16, 2022  

  • Possible US$637mln loan via STDM to shore SJM: mgmt
    Possible US$637mln loan via STDM to...

    May 04, 2022  

More news
  • Andrew Lo takes controlling stake in Suncity, Summit Ascent
    Andrew Lo takes controlling stake in...

    May 19, 2022  

  • Okada Manila chair Manuel Lazaro dies aged 87
    Okada Manila chair Manuel Lazaro dies...

    May 19, 2022  


Latest News

Andrew Lo takes controlling stake in Suncity, Summit Ascent

Andrew Lo takes controlling stake in Suncity, Summit Ascent

May 19, 2022  

Andrew Lo Kai Bong (pictured), a senior executive at Hong Kong-listed casino investor Suncity Group Holdings Ltd, acquired controlling shares in the firm with effect from May 13, according to...
Read More
Okada Manila chair Manuel Lazaro dies aged 87

Okada Manila chair Manuel Lazaro dies aged 87

May 19, 2022  

Bloomberry plans 3rd Philippine casino, coastal near Manila

Bloomberry plans 3rd Philippine casino, coastal near Manila

May 19, 2022  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day


US$403.9 million

Interim normalised profit after tax and amortisation reported by slot machine maker and online gaming content provider Aristocrat Leisure



Most Popular

  • Wynn CEO, Macau execs in base pay cut in return for sharesWynn CEO, Macau execs in base pay cut in return for shares May 17, 2022
  • Macau repeat visitors denied visa by China says BernsteinMacau repeat visitors denied visa by China says Bernstein May 16, 2022
  • U.S. says Steve Wynn ‘foreign agent’, lobbied for ChinaU.S. says Steve Wynn ‘foreign agent’, lobbied for China May 18, 2022
  • Alleged bribe offer to ex-Wynn manager probed by HK, MacauAlleged bribe offer to ex-Wynn manager probed by HK, Macau May 17, 2022
Copyright 2014-2022 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us