Bangkok--24 Jul--Moody's Investors Service Moody's Investors Service sees a stable rating outlook overall for the Asia Pacific gaming and entertainment sector, but the general credit trend is weakening. "Most rated companies are gearing up balance sheets to fund capital expenditures or undertake business restructuring, and therefore heightened execution risks associated with sizable development programs are part of the agenda," says the ratings agency in the new report. Authored by Moody's Analysts Kaven Tsang and Peter Fullerton, the report examines the outlook for ratings on the gaming and entertainment sector in Asia (ex Japan), including casino and cruise line operators. "The region's gaming sector is undergoing a significant revolution, particularly in Macau, which has been the center of global attention since it liberalized its gaming industry in 2002," says Tsang, from Moody's Hong Kong office. "Conditions in Macau are highly favorable to the gaming and leisure sector, underpinned by advantageous demographic trends and a positive economic climate," he says. "However, given that expansion in Macau is largely debt-funded, high gearing is the norm, and rapid growth and heightened competition will create a degree of uncertainty for the companies involved," adds Fullerton, in Moody's Sydney office. "Medium-to-long term success will require not only the right strategies, but also pockets deep enough to successfully execute business plans in a fast-changing and competitive investment environment," he says. According to the report, after execution and development risk, the second most crucial ratings factor in the Macau market over the coming year will be the dynamics between demand (as measured in visitor numbers) and supply (number of tables/slot machines). Outside Macau, Singapore is actively developing its entertainment and leisure industry, while in Australia strong demand fundamentals are supporting increases in total revenues for gaming companies, it says. The report, part of the Moody's Industry Snapshot series which offer succinct and incisive looks at specific sectors, is entitled 'Macau Story: Fast Growth and Intense Competition Feed Uncertainty,' and can be found at www.moodys.com. Hong Kong Kaven Tsang Analyst Corporate Finance Group Moody's Asia Pacific Ltd. JOURNALISTS: (852) 2916-1150 SUBSCRIBERS: (852) 2916-1121 Sydney Peter Fullerton Asst Vice President - Analyst Corporate Finance Group Moody's Investors Service Pty Ltd JOURNALISTS: (612) 9270-8102 SUBSCRIBERS: (612) 9270-8100