Pursuits
Macau Economy Seen at Risk as Moody’s Downgrades Gaming Hub
- Agency expects Macau GDP to continue shrinking in 2016, 2017
- Government’s gaming-focused strategy leaves growth volatile
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Moody’s Investors Service downgraded the Macau government’s credit rating, reflecting concerns the Chinese city that’s home to units of Las Vegas Sands Corp. and Wynn Resorts Ltd. will suffer volatile growth amid slumping gaming revenue.
The world’s largest casino hub was cut by one grade to Aa3 and assigned a negative outlook, the rating agency said in a statement Wednesday. Moody’s also lowered Macau’s long-term foreign currency bond ceiling to Aa2 from Aaa and its long-term foreign currency deposit ceiling to Aa3 from Aa2.