Moody’s turns Sands view to stable

Moody’s Investors Service said it revised its outlook for Las Vegas Sands Corp. and Sands China Ltd. to stable from negative affirmed LVS’ Baa3 rating and SCL’s Baa2 rating.

“The rating affirmation and stable outlook reflect our expectation that LVS's financial leverage will improve significantly over the next two years, as Macau's gaming market will recover strongly after China recently lifted its pandemic-related travel restrictions. The expected recovery in Macau, coupled with the recovery already underway in Singapore will support revenue and EBITDA growth and drive leverage down.

“The stable outlook incorporates our view that the company's liquidity will remain strong, with the expectation that the company will improve revolver availability at SCL, as cash flow improves and borrowings are repaid,” Moody’s said in a press release.

However, the agency said it expects the issuers’ leverage to remain elevated in the near term since it will take time to achieve pre-pandemic leverage levels.

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