Debt market tab

Debt market tabs may be available from Q2 for some names linked to Macau, the group said.

Bloomberg Intelligence said its market consensus 'negative' rating outlook for credit products currently applicable to Macau game companies could be lifted this year against the backdrop of a recovery in the Macau casino market since January. 

"A better-than-expected Lunar New Year visit figure could lead to a positive earnings correction, which could lead to a faster-than-expected recovery of credit indicators," Cecilia Chan, a credit analyst at Bloomberg Intelligence, said on Monday's podcast.

"We now expect most game publishers' leverage to fall below their respective downgrade thresholds from the end of 2023, meaning the 'negative' rating outlook is likely to be lifted," she added.

For the podcast, Bloomberg Intelligence gathered information from credit rating agencies Moody's Investors Service, S&P Global Ratings, and Peach Ratings. The collected data included a number of Macau game companies, including Sands China, Melco Resorts & Entertainment, MGM China Holdings, Win Macau and SJM Holdings. Each received a 'negative' rating outlook rating from at least two of the mentioned credit institutions.

Macau operator credit outlook and some recent borrowing costs have been affected by factors including consecutive quarters of negative earnings before interest, taxation, depreciation and amortization.

But Macau-linked issuers could reach an EBITDA break-even point this year "as soon as they reach the first quarter," Bloomberg Intelligence said.

"Despite actually facing limited debt maturities this year, I think the Macau game issuer's major U.S. dollar market could start again in 2023," Ms Chan said. 슬롯머신

"We therefore expect the debt market to be more leveraged from Q2 as industry fundamentals and market sentiment for the Macau gaming sector improves," she said. This could lead to price adjustments in the existing bond curve," it added

"We expect Macau's total gaming revenue this year to reach 52% of pre-pandemic levels, up from an earlier forecast of 42%," Angela Hanley, chief game and hospitality analyst at Bloomberg Intelligence, said on the same podcast

"This is also higher than the current market consensus and the change is mainly due to the rapid resumption of mainland China," the analyst added.