Moody’s affirms senior unsecured ratings for LVS, Sands China, amid parent’s ‘strong liquidity’

Moody’s Ratings has affirmed casino group Las Vegas Sands Corp’s (LVS’s) ‘Baa3’ senior unsecured rating, as well as the ‘Baa2’ senior unsecured rating of its Macau unit Sands China Ltd. The outlooks for the two companies remain ‘stable’, the ratings agency said in an update. Moody’s added in its rating action, issued on Thursday: “The affirmations and stable outlooks reflect Las Vegas Sands’ strong liquidity, and our expectation that Las Vegas Sands will maintain debt/EBITDA [earnings before interest, taxation, depreciation, and amortisation] in the low 3x range.” The assessment also took into account Las Vegas Sands progressing with “major developments, including the Marina Bay Sands expansion in Singapore, which upon completion will deliver a considerable amount of additional visitation and in turn, considerable earnings and ability to reduce leverage”. Las Vegas Sands broke ground in July 2025 on a US$8-billion expansion project for Marina Bay Sands. When completed, it will feature a 570-suite hotel tower, shops and additional gaming space, as well as a spa and other amenities. The parent runs the Singapore business via its unit Marina Bay Sands Pte Ltd. Obligations rated ‘Baa’ by Moody’s are judged to be medium-grade and subject to “moderate credit risk and as such may possess certain speculative characteristics,” per the institution’s definitions. Moody’s said in its latest commentary: “Ratings improvement would be predicated on Las Vegas Sands achieving and maintaining gross debt/EBITDA on a Moody’s adjusted basis at 2.0x or lower, and generating consistent positive revenue growth with a stable to higher EBITDA margin.” Sands China reported in its second-quarter results that its adjusted property EBITDA margin declined to 24.0 percent from 31.5 percent a year earlier, and its adjusted EBITDA fell 24.0 percent year-on-year. Nonetheless, Seaport Research Partners said in recent commentary – citing Las Vegas Sands’ management – that the Macau operation “does not plan to let up on spend in order to drive share gains and EBITDA growth”. Moody’s stated in its latest rating action that Las Vegas Sands’ liquidity “is strong,” with US$3.38 billion of unrestricted cash and cash equivalents and US$4.26 billion of availability, “net of borrowings and outstanding letters of credit under its credit facilities,” as of June 30. The ratings agency noted the parent had a US$1.5-billion revolving credit facility expiring in April 2029; while Sands China had an approximately US$2.5-billion revolving credit facility, expiring in October 2029. There was also an approximately US$750-million Singapore revolving facility expiring in August 2031. Marina Bay Sands had access to approximately US$4.68 billion under its US$5.88-billion unrated Singapore delayed-draw term-loan facility. Moody’s said its outlook on the parent and the Macau unit incorporates its “expectation that the company will maintain ample liquidity, and manage its upcoming maturities in a timely manner”. The institution stated that continued dividends, share repurchases and the use of secured debt to fund developments could “constrain the credit profile”. But Moody’s added: “We expect Las Vegas Sands to maintain covenant compliance.”