Moody's reviews Las Vegas Sands for cut

Moody's Investors Service said it placed the ratings of Las Vegas Sands Corp. on review for downgrade, including its Baa3 senior unsecured rating. Moody's also placed the Baa2 senior unsecured rating of Sands China Ltd., a 70% owned subsidiary of LVSC, on review for downgrade.

"The review for downgrade is prompted by steep declines in visitation and gaming revenue in LVSC's Macau and Singapore operations, as a result of the spread of the coronavirus that has restricted travel in the region as well as expected reduced travel, consumer and business activity in the U.S.," stated Adam McLaren, a Moody's gaming analyst, in a press release.

The pandemic is already hurting the company's Macau casinos because containment efforts reduced visitation including closing for 15 days in February. While the company's Macau casinos have reopened, the ramp-up of visitation and gaming revenue will take time as travel restrictions remain in the region. Las Vegas Sands' exposure to Macau is high, representing about 64% of total revenue, with Singapore representing 23%.

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