Despite recent concerns that casino operators in Macau may soon face a tougher revenue environment, rating agency Fitch said on Friday it sees “no evidence that tighter credit conditions and slowing growth in China are pressuring Macau’s gaming demand.” Fitch adds it “continues to believe that the Macau market will grow solidly, albeit at a decelerating rate, moving into 2012.” Fitch’s 2012 base case forecast assumes that gross gaming revenue will grow by 20 percent or more again next year. Fitch notes several major casino operators have indicated that no evidence exists to support the view that visitation levels, spending patterns, or collections are being eroded in any material way. The ratings agency admits the primary risk to the Macau outlook lies in the potential that tighter credit conditions could curtail junket operators’ ability to extend credit to players. “While it is possible that some smaller, less liquid junket operators may be feeling pressure from reduced credit availability on the mainland, larger players have apparently not been affected as yet,” Fitch says.
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