S&P Global Ratings has downgraded Las Vegas Sands Corp. to junk, citing a slower recovery in the Macau gaming market after omicron cases brought a fresh round of business shutdowns.
S&P now rates the company BB+, one step below investment grade, according to a report Wednesday. The gaming company is still rated high-grade by Moody’s Investors Service and Fitch Ratings, which means one of those graders would also need to cut Las Vegas Sands’ ratings for its debt to fall out of investment-grade bond indexes that are widely tracked by large mutual funds and exchange-traded funds.
The gaming industry has struggled to recover from the Covid-19 pandemic as omicron cases spiked across the world in recent months, causing another round of shutdowns and restrictions on international travel which are just now beginning to lift. Las Vegas Sands owns and operates casino resorts in Macau and Singapore, and reported total debt of US$14.8 billion through Dec. 31, according to a filing.