Decline in Las Vegas Gaming Market Places Sands Corp. on Review
Moody's Investors Service on Friday placed its credit ratings of Las Vegas Sands Corp. and one of its subsidiaries under review for a possible downgrade, due to slower-than-expected growth amid a softening Las Vegas gambling market, Associated Press reported.
The ratings of Venetian Macao were not affected by the ratings action. However, the company's shares fell 33 cents to 37.41 US dollars in morning trading. The stock has ranged from 30.56 US dollars to 148.76 US dollars in the last 52 weeks.
According to the report, the decline in the Las Vegas gaming market has been worse than Moody's expected, with the weaker economy meaning Vegas has had fewer visitors staying for shorter periods and spending less money.
Those factors could make it difficult for Las Vegas Sands LLC to maintain the acceptable level of profitability in relation to its debt that is required to retain its current rating, Moody's said.
Moody's said its review will focus on operating trends in the Las Vegas gaming market and their impact on Las Vegas Sands LLC's abilities to cut long-term borrowing while contributing to its parent company's global development, the report said.
