Asia round-up: SJM Holdings downgraded, Q4 reports, Macau hotel occupancy rises

Moody’s downgrades SJM Holdings to Ba2

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Moody’s has decided to downgrade SJM Holdings’ corporate family rating (CFR) to Ba2 from Ba1, with ratings still being under review for even further downgrade.

At the same time, Moody's also downgraded the backed senior unsecured ratings on the bonds that were issued by Champion Path Holdings and guaranteed by SJM.

"The downgrade mainly reflects SJM's continued delay in the execution of its refinancing plan, which raises some concern over its financial and liquidity management," said Sean Hwang, a Moody's Assistant VP and Analyst.

He added: "The review for downgrade reflects the fact that SJM's refinancing risk will remain elevated until its near-term maturities are fully refinanced. A further downgrade is possible if SJM fails to secure long-term financing to address the maturities in a timely manner.”

SJM has been trying to obtain a new secured loan of HK$19bn ($2.43bn) to refinance its current facilities, but the execution remains delayed due to pending regulatory approvals.

Moody’s is expecting SJM to obtain it, considering 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 finish the refinancing through the execution of planned syndicated facilities or other long-term funding.

Grand Korea Leisure reports over $90m net loss for 2021

Grand Korea Leisure, an operator of foreigner-only casinos in South Korea, has reported a full-year 2021 net loss of KRW113.27bn ($94.7m).

The report shows an operating loss of KRW145.83bn for 2021, compared to KRW88.81bn for the previous year. The group also reported a Q4 2021 net loss of nearly KRW34.38bn.

The company suggested the prolonged closure of its casinos and the absence of visitors were the main factors for the decline in sales in 2021.

Japan Cash Machine sees 13% net sales increase for fiscal year

Japan Cash Machine has reported a net income of JPY1.01bn ($8.71m) for the nine months ended 31 December 2021.

The group reported net sales of JPY14.58bn in the first three quarters of its fiscal year ending 31 March 2022, showing a 13% increase year-on-year.

Operating income for the period is JPY857m, compared to an operating loss of JPY1.76bn for the previous year.

In a statement, the group commented: “Net sales are expected to exceed the forecast announced on 5 November 2021, due to demand exceeding the initial forecast, mainly in the global gaming market and overseas commercial market.”

PAGCOR excludes over 200 from gaming venues for 2021

A report from the Philippine Amusement and Gaming Corporation (PAGCOR) shows the exclusion of 206 individuals from gaming venues in the country for 2021, marking a 15% increase year-on-year.

The report showed 94 individuals were excluded based on their self-exclusion requests, 112 came at the requests of family members and none emanated from the casino licensee.

According to the full report, between 2013 and 2021, 1,215 people have been excluded from the country’s gaming establishments.

Some Macau hotels see 100% occupancy rate during Chinese New Year

According to SJM Holdings Co-Chairman and Executive Director Angela Leong, several Macau hotels reached 100% occupancy during the Chinese New Year (CNY).

She said: “There were a few days during CNY at some of our hotels, the hotel’s occupancy rate was 100. Some of them reached 60% to 70%, so the overall performance I think was good.”

The Macao Government Tourism Office reported that the average occupancy rate of five-star hotels was 70% during CNY, up 19% compared to CNY of 2021; four-star hotels reported 54% occupancy rate and three-star hotels saw a 59% occupancy rate.

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