— 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.
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