Macau is likely to recover faster than Las Vegas from the impact of Covid-19, but the trajectory remains opaque, Fitch Ratings said.
Proximity to its main source market of Mainland China will be a key driver of recovery, although the continued restrictions on visitation from Macau and the potential for China to reclose borders should there be another outbreak are risk factors.
For Q3, the ratings agency expects revenue to be down nearly 80 percent from the prior year, with Q4 down 50 percent. For 2021, revenue is still likely to be down some 20 percent on 2019 levels.
Elsewhere, Fitch said resorts in the Philippines, Singapore and Australia will benefit from support from local markets, but they have “varying reliance on international travel, which will remain tepid in the near term.”
“The revenue generation of companies exposed to local markets and online channels will hit 2019 baseline levels faster than those with high exposure to destination markets or markets with a more cautious approach to re-opening and travel.”
The firm notes that credit profiles for global gaming operators are generally strong enough to weather the current storm.