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StumbleMoody’s raises ratings on Las Vegas Sands
Friday, Aug. 20, 2010 | 5:49 p.m.
Moody's Investors Service on Friday raised the ratings of Las Vegas Sands Corp., citing strong performance and favorable growth prospects for the casino operator's Asian gaming assets and maintained the casino operator's positive outlook.
The ratings firm raised Las Vegas Sands' corporate family and probability of default ratings to "B2" from "B3." It also boosted the rating on the company's 6.375 percent senior notes to "B2" from "B3."
In addition, Moody's raised some debt ratings for the casino operator's Macau subsidiary. Moody's lifted the segment's senior secured term loans and senior secured revolver to "B2" from "B3."
Las Vegas Sands has a speculative grade liquidity rating of "SGL-2." Its outlook is positive.
Despite continued challenges in its Las Vegas segment, the company's results are getting a substantial boost from its Asian business, which Moody's expects will continue to see increases in visitors, said Keith Foley, Moody's senior vice president.
"The strong performance of (Las Vegas Sands') Macau casinos combined with the progressive opening of Marina Bay Sands through the beginning of 2011 should result in a continued deleveraging of the consolidated entity," Foley said.
Combined, the casino operator's Macau casinos and Marina Bay Sands integrated resort in Singapore now account for about 75 percent of the company's consolidated net revenue.
Last month, Las Vegas Sands reported it narrowed its loss in the second quarter to $4.7 million as revenue soared nearly 51 percent to $1.59 billion.
Revenue increased more than 40 percent in its Macau operations, but fell 5.4 percent at its Las Vegas segment.
The ratings increase also reflects that a recent amendment and extension of the company's U.S.. restricted group bank credit facilities substantially reduces concerns about that subsidiary's debt burden, covenant compliance and debt maturity profile, Moody's said.
Shares of Las Vegas Sands slipped a penny to $29.63 on Friday.
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Disappointment for the posters who celebrate bad news for gaming companies.
That's a Miracle I can accept!
You mention "Moody's Investors Service" as if they're some sort of boiler-plate, iconic, masthead reference.
How is Moody's track record?
People who think critically would ask these questions -- and I already know the answer. Does the AP?
As long as the Vegas operations can't go back into the profit zone, this will only hurt the employees that must fear further unemployment and cuts. The company will prosper due to the Singapore and Macau operations. Even MGM International Rsrts is now weighing this option. By building more gaming establishments in Macau it could dig istelf out of the losing slump. This however, doesn't change anything about the disastrous CitiCenter investment.
From Switzerland
from Wikipedia
B1, B2, B3
Moody judges obligations rated B as speculative and "subject to high credit risk",[7] and have "generally poor credit quality."[8]
Sounds like a negligible improvement
NEVER bet against the billionaire Jewish guy!
They have a name for any B rated bond on Wall Street-JUNK BOND.Hows Moody's credibility now after rating sub-prime morgage bonds AAA?By the way institutional investors are prohibited from purchasing anything below AAB.Any rise in this stock will be on the backs of the retail investor,aka-you and me!Sorry you don't want to hear that Logic-should-rule,too bad u don't think like your moniker say's.What's the great news,the crap stinks a little less?
Like I said, the same posters will always search for the bad spin even when the news is good.
Logic:I guess you are not an investor,otherwise u would be analizing all the data for what it is good or bad.I don't take the pump monkeys at face value,I do my own research based on the facts.The facts are these companies pay rating agencies to rate them,no conflict of interest there is there?Wonder what the going rate is for this pump?The facts are even this almost insignificant uptic in rating still would leave an imbecile shaking his head no to his broker.This rating still leaves them barely peeking up from the bottom of a swirling toilet bowl.Change your name to Ostriches-should-rule.If this should be kept from the public so they can buy more on ignorance,well sold to you...
Nope, not an investor although I wish I had bought Wynn and LVSands stock. Those stocks have made huge runs up since the March 09 lows.
Oh sure roguerunner, Moody's is paid off.
Hilarious and ignorant....
Ost...I Mean Logic,Didn't mean to really jump your case,now that I think about it, I think u were slammin the one's who say things like *Good,I hope they burn down,they took al my money anyways."Just trying to put out there that there may be a different reality than what the media trys to portray,which I find is the case all to often.Sometimes ya gotta dig into things a little further to read between the lines.Reading your line about Moodys I don't know if u are agreeing or being sarcastic.Don't know if being paid off is what u would call it,but that really is the arrangement companies have with ratings agencies!How else do u think they handed out the top AAA rating on SUBprime mortgage bonds?Look it up for yourself,part of the reason this whole bust happened in the first place,common knowledge...I hope!Not so funny,and not so ignorant to have known this about 3 years ago.Take u about 3 seconds to look it up for yourself.Just get a little tired of people thinking unicorns poop pretty rainbow skittles everytime they hear a tinge of what they think is great news!
Logic:P.S. Just about every stock wen't up after the March 2009 lows!
gbigs;I saw an article the other day that said that even if the Federal goverment sold off every asset they own,the states own,the counties own,the cities own,every private citizen owns,our country would still be unable to service it's mounting accumulated debts,much less pay them all off!What more do we need to know about where this country's outcome is headed?Math don't lie!
That Fool from Moody.
Sands lost market share in Macau and is now in third place. Macau is booming but Sands did not benefit as much as the others.
In Singapore they will get killed. They are competing against Genting which has existing clientele in Singapore ( Star Cruises ) and in Malaysia, Genting. They are now trying to steal away Genting clientele.
For instance Sands will give me a gold card if I can show them I have a Genting silver card. Genting is fighting back by giving me a free 2N cruise if I pay the $100 levy at their casino.
John-from-Singapore
Thanks for that update. I am glad to hear that Genting is doing all right. I have quite some stocks of this company and was delighted to see the jump as of 10 days ago. It was impressive to see what happened after they published the Q2 figures :)
I think the Singaporeans that like to gamble will gladly pay this entry level but only for a limited time. 100 Dollars is quite a lot and if you think that this is money that goes to the government by 100 per cent it's a little bit of an extra tax the visitors must pay. Once the local gamblers will no longer pay this levy a major market segment will drop off and both casinos in your city will mostly rely on the tourists. It will be essential to find out what company has the better and more efficient marketing potential. True gamblers from Singapore might change their citizenship and visit Singapore as tourists in the future, as paying 100 dollars per day is a little too much in my eyes.
Do you have infos that the casinos give the players some sort of "kick back" when they buy an annual levy for 2000? Would be interesting to find out if there are certain agreements and deals available for the local community.
Greetings from Switzerland
I really know a little what and who control the stock market,but only from what resource that over-exhausted at present,I can make a conclusion that the future for sands and Singapore Marina Bay are splendid and benefit space are enough big also.sands never lost market share in Macau,the American operate-mode and culture are being applied and spread stably,the net profit is for the stock holder firstly,secondly for others.