Moody’s confirms Venetian ratings

Thursday, Feb. 7, 2002 | 9:03 a.m.

Moody's Investors Service on Wednesday confirmed the credit ratings of Las Vegas Sands Inc., the parent company of the Venetian hotel-casino. The move ends the threat of an immediate downgrade of $716 million in debt held by the company.

Moody's placed Las Vegas Sands on review for possible downgrade in September. It ultimately decided not to downgrade the company for a variety of reasons, including stabilization of room rates and occupancy, cost cutting measures, modification of credit agreements and the indefinite delay of plans to build a 1,000-room hotel tower.

"Combined, these factors provide the company with some additional flexibility to manage through the near-term challenges associated with a slowing economy and travel concerns," the Moody's report said.

Las Vegas Sands' credit ratings range from "B2" to "Caa1." These ratings are below investment grade.

Moody's maintained a negative outlook on the company's ratings, raising the possibility of future downgrades.

"Although the Venetian has experienced some improvement in operating trends since Sept. 11, 2001, a high degree of uncertainty still exists with respect to Las Vegas visitation trends and overall travel and economic concerns," the Moody's report said.

archive