S&P expects Macau's gaming revenue growth to slow to between 3% and 7% this year

S&P Global Ratings stated that the rapid growth phase of the Macau gaming industry may be fading, as the industry transitions from the post-pandemic recovery phase to a more mature development period, constrained by weakened consumer power in China and limited supply of new facilities. It currently predicts that the total gaming revenue in Macau will slow to a growth rate between 3% and 7% by 2026. However, robust business operations, selective market share growth, and deleveraging are expected to still provide moderate upward space for the industry.

S&P pointed out that for its ratings of the four Macau gaming operators, Wynn Resorts (WYNN.US), MGM Resorts (MGM.US), Melco Resorts & Entertainment (Macau), and Studio City (MSC.US), the deleveraging process is particularly critical, and it believes that the progress of these companies in reducing financial leverage will determine whether and when their ratings can be restored to pre-pandemic levels