Home » Stock Market News » TEXT-S&P Rts LVSC’s Subsidiary, Marina Bay Sands’ Facs ‘BBB’

TEXT-S&P Rts LVSC’s Subsidiary, Marina Bay Sands’ Facs ‘BBB’

Marina Bay Sands Pte. Ltd., a Singapore-based subsidiary

of Las Vegas Sands Corp. (LVSC), recently sealed a refinancing

of a comparison cumulative credit facilities.

— We are assigning a ‘BB+’ corporate credit rating to

Marina Bay Sands and a ‘BBB‘ emanate and ‘1’ liberation ratings to

Marina Bay Sands’ new Singapore dollar (S$) 5.1 billion credit


— The certain opinion reflects a perspective that a higher

rating on LVSC is probable over a subsequent several quarters, based

on a stream opening expectations opposite a global

portfolio of properties.

NEW YORK (Standard Poor’s) Jun 28, 2012–Standard

Poor’s Ratings Services pronounced currently that it reserved a ‘BB+’

corporate credit rating to Singapore-based Marina Bay Sands Pte.

Ltd. (MBS), a auxiliary of Las Vegas Sands Corp. (LVSC;

BB+/Positive/–). The opinion is positive.

We also reserved MBS’ S$5.1 billion credit comforts our

‘BBB’ issue-level rating (two notches aloft than a corporate

credit rating) and a liberation rating of ‘1’, indicating our

expectation for really high (90% to 100%) liberation for lenders in

the eventuality of a default.

The credit comforts are stoical of a S$500 million

revolving credit trickery due Dec. 25, 2017 and a S$4.6 billion

term loan due Jun 25, 2018. MBS will use deduction from a new

facilities to refinance existent debt, compensate fees, losses and

accrued interest, and for ubiquitous corporate purposes.

All other existent ratings for a Las Vegas Sands Corp.

family of companies sojourn unchanged.

“Our corporate credit rating on MBS reflects a overall

credit peculiarity of a LVSC family of companies and is aligned

with a ‘BB+’ corporate credit rating on LVSC,” pronounced Standard

Poor’s credit researcher Melissa Long.

“Despite a graphic financing structures during LVSC’s U.S.,

Macau, and Singapore subsidiaries, we cruise a consolidated

entity when assessing LVSC’s credit quality.”

We hold a vital attribute between a primogenitor and

each auxiliary as an critical cause that has a temperament on the

credit peculiarity of a altogether combined entity. We consider

MBS to be a core auxiliary of LVSC as we trust that the

company is constituent to LVSC’s stream temperament and future


MBS is unconditionally owned by several entities of LVSC and

shares a identical code with other organisation entities. Additionally,

MBS represented tighten to half of LVSC’s combined property

level EBITDA for a 12 months finished Mar 31, 2012, that in

our perspective is significant.

Thus, notwithstanding credit measures on a standalone basement that

might differently be understanding of a aloft rating, we are

assigning MBS a corporate credit rating during a same turn as our

corporate credit rating on LVSC.

The certain opinion reflects a perspective that a aloft rating

is probable over a subsequent several quarters, formed on a current

performance expectations. To lift a rating to ‘BBB-‘, we

would design precedence to be generally closer to 3x, yet we

would be gentle with it temporarily spiking to a high-3x

area to account growth projects.

In a eventuality of a clever ramp-up of Sands Cotai Central, we

believe an ascent to ‘BBB-‘ is possible, as we would expect

leverage to urge to next 2.5x by early 2013. An

investment-grade rating on Las Vegas Sands, however, would also

require government to publicly clear a financial policy

around a toleration for precedence that is aligned with our

leverage threshold during a ‘BBB-‘ rating.

In addition, while we are misleading when a aforementioned

lawsuits and investigations would be resolved and what effect,

if any, a intensity visualisation would have on credit quality, these

issues might import on ascent intensity until we have further


A rider of a rating opinion to fast or a downgrade

could outcome from opening meaningfully next our

expectations, or from a association holding a some-more aggressive

posture toward additional growth opportunities, resulting

in a postulated spike in precedence to above 4x.

Source: Article Source

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