Moody's gives Baa2 to Sands China notes

Moody's Investors Service said it assigned Baa2 ratings to Sands China Ltd.'s planned five-year, seven-year and 10-year senior unsecured notes offering. The Baa3 senior unsecured rating of Las Vegas Sands Corp. and the Baa2 senior unsecured rating at SCL remain unchanged. SCL is a 70% owned subsidiary of LVSC.

The proceeds and cash on hand will be used to redeem in full SCL's $1.8 billion of 4.6% senior unsecured notes due 2023 and pay any accrued interest and the associated make-whole premium on the notes.

“The refinancing transaction at SCL is a modest credit positive as it removes the largest near-term maturity for the company, improving the company's debt maturity profile, in a largely leverage neutral fashion. A reduction in interest expense is also expected as a result of the refinancing. Because the change in leverage and cash interest expense is not material, the ratings are not affected,” Moody’s said in a press release.

The outlook remains negative.

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