Bangkok--28 Sep--Moody's Investors
Moody's Investors Service says that it is maintaining a stable outlook for Asia Pacific's gaming sector as robust levels of intra-regional travel and consumer spending continue to support steady growth in gaming revenues.
Moody's rates four leading casino operators in the region with ratings ranging from Baa1 to B3. The operators are located in Australia, Macau and Malaysia. The stable industry outlook expresses Moody's expectations for the sector's fundamental credit conditions over the next 12 to 18 months.
"Looking ahead, we expect Macau's gaming revenue will extend its growth in the next 12-18 months, supported by China's still-booming economy. But the growth will be balanced by the two mega resorts scheduled to open in 2011," says Kaven Tsang, a Moody's AVP/Analyst.
With Australia, Moody's expects a relatively steady performance from the gaming sector with growth showing quite a close correlation to increases in household income and earnings.
Meanwhile, in Singapore, the partial openings this year of the country's first two casino complexes have led to encouraging results, the report says. Both are still ramping up operations, while the sustainability of their strong initial performance remains unproven.
Finally, in the case of Malaysia, Moody's expects the market will extend its stability and resilience on expectations of a stable domestic economy and in the absence of external threats. The market -- which operates under monopoly conditions -- has been unaffected by competition from the Singapore casinos.
Over the medium term, the regional gaming market will grow further in capacity, as many operators seek opportunities in light of the recent strong performance. The liberalization and development of gaming markets elsewhere in Asia are also a possibility, but these are more medium-to-long tem challenges with no impact in the foreseeable future.
Tsang was speaking on the release of a new Moody's report on the gaming sector in Asia Pacific. The report was authored by Tsang and Maurice O'Connell, a Moody's Vice President and Senior Analyst.
The report is entitled, Asia Pacific's Gaming Sector: A Growing Pie for All to Share. It can be found at www.moodys.com