Macau casino operators seeking to reduce debt progressively

Operators of casinos in Macau took on a sizable amount of new debt in order to survive the coronavirus pandemic. However, Morgan Stanley thinks that over the coming years, the six casinos will succeed in easing those pressures. The bank anticipates that the gambling enterprises operating in the special administrative region will significantly reduce outstanding debt over the following three years, possibly bringing debt levels back to those from before COVID 19 by the end of 2027.

 

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It remains to be seen how the next few years unfold as many uncertainties still exist. The market is still recovering so profits may not increase as rapidly as hoped. Managing debt repayments along with other costs is no easy task. Close monitoring of the situation is wise.