SJM Holdings Downgraded, Q4 Reports, Macau Hotel Occupancy Rises
Moody’s downgrades SJM Holdings to Ba2
Moody’s has decided to downgrade SJM Holdings’ Corporate Family Rating (CFR) from Ba2 to Ba2, with the ratings still under review for a further downgrade.
At the same time, Moody’s also downgraded the senior unsecured ratings backed by bonds issued by Champion Path Holdings and guaranteed by SJM.
“The downgrade primarily reflects SJM’s continued delay in executing its refinancing plan, which raises concerns about its financial and liquidity management,” said Sean Hwang, assistant vice president and analyst at Moody’s.
He added: “The review of the downgrade reflects the fact that SJM’s refinancing risk will remain elevated until its near-term maturities are fully refinanced. Further downgrading is possible if SJM fails to obtain a long-term financing to meet maturities in a timely manner.”
SJM has attempted to secure a new HK$19 billion ($2.43 billion) secured loan to refinance its current facilities, but execution remains delayed due to pending regulatory approvals.
Moody’s expects SJM to get it, given its quality assets in Macao SAR, China, as well as its long-standing banking relationships. Moody’s is also confident that SJM will obtain the necessary approvals to execute its new banking facilities.
However, the rating reviews will focus on SJM’s ability to complete the refinancing through the execution of scheduled syndicated facilities or other long-term financing.
Grand Korea Leisure Announces Net Loss of Over $90 Million for 2021
Grand Korea Leisure, an operator of foreign-only casinos in South Korea, announced a net loss for the year 2021 of KRW 113.27 billion ($94.7 million).
The report shows an operating loss of KRW 145.83 billion for 2021, compared to KRW 88.81 billion for the previous year. The group also announced a net loss in the fourth quarter of 2021 of almost KRW 34.38 billion.
The company suggested that the prolonged closure of its casinos and the absence of visitors were the main factors behind the drop in sales in 2021.
Japan Cash Machine sees net sales increase 13% for the year
Japan Cash Machine reported net profit of 1.01 billion yen ($8.71 million) for the nine months ended December 31, 2021.
The group posted net sales of 14.58 billion yen in the first three quarters of its fiscal year ending March 31, 2022, showing a 13% year-on-year increase.
Operating profit for the period was 857 million JPY, compared to an operating loss of 1.76 billion JPY for the previous year.
In a statement, the group commented, “Net sales are expected to exceed the guidance announced on November 5, 2021, due to higher than initial forecast demand, primarily in the global gaming market and the overseas commercial market.”
PAGCOR bans over 200 gaming sites for 2021
A report by the Philippine Amusement and Gaming Corporation (PAGCOR) shows the exclusion of 206 people from gambling halls in the country for 2021, marking a 15% year-over-year increase.
The report showed that 94 people were excluded based on their self-exclusion requests, 112 came at the request of family members and none were from the casino licensee.
According to the full report, between 2013 and 2021, 1,215 people were banned from gambling establishments in the country.
Some Macau hotels see 100% occupancy during Chinese New Year
Several hotels in Macau hit 100% occupancy during Chinese New Year (CNY), according to SJM Holdings Co-Chair and Executive Director Angela Leong.
She said: “There were a few days during CNY in some of our hotels, the hotel occupancy rate was 100. Some of them reached 60% to 70%, so the overall performance, I think was good.”
The Macau Government Tourism Office reported that the average occupancy rate for five-star hotels was 70% during CNY, up 19% from CNY 2021; four-star hotels recorded an occupancy rate of 54% and three-star hotels recorded an occupancy rate of 59%.
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