Fitch: APAC Casinos to Be Resilient to Lower VIP Volumes

(The following statement was released by the rating agency) Link to Fitch Ratings' Report: 2015 Outlook: Asia-Pacific Gaming www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=823448">http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=823448 SINGAPORE/SYDNEY, December 14 (Fitch) Fitch Ratings expects Asia-Pacific (APAC) gaming operators' performance to remain resilient to a decline in Chinese VIP customers and a more competitive environment as new casinos start operations. Fitch's Stable Outlook for the APAC gaming sector hinges on the expectation that the Chinese VIP segment is near a trough and will start to recover by 2H15, the agency says in a new special report. Fitch forecasts gaming revenue in Macao will fall by 4% in 2015, driven by the weakness in the VIP business. The weakness, which started in 2H14, will persist through 1H15 until the negative trends bottom out and new projects open by 2H15. The Singapore casinos are mature properties, which will be able to withstand moderately declining revenues and margin compression without impairing their underlying credit profiles, Fitch says. Resorts World Genting, the sole casino license holder in Malaysia, is less dependent on Chinese tourists and Fitch expects it will maintain its credit profile. Australian casinos' performances largely depend on the macroeconomic outlooks of the states they are located in. There is a significant pipeline of new casinos and investments in existing ones in Australia, where Fitch estimates gross gaming revenues will rise by around 4% in 2015. The APAC gaming industry will become more competitive with the inauguration in the Philippines of City of Dreams Manila and Resorts World Bayshore in the next two years and the Genting group investing in a USD2.20bn project in Jeju, South Korea. Fitch believes that two proposed casinos in Japan are unlikely to be completed in time for the 2020 Olympics because Prime Minister Shinzo Abe has called for a general election in mid-December 2014, which will delay the passage of the bill to legalise casinos. The special report "2015 Outlook: Asia-Pacific Gaming" is available at www.fitchratings.com or by clicking on the link in this media release. Contact: Nandini Vijayaraghavan, CFA Director +65 6796 7216 Fitch Ratings Singapore Pte Ltd 6 Temasek Boulevard #35-05 Suntec Tower Four Singapore 038986 Vicky Melbourne Senior Director +61 2 8256 0325 Michael Paladino, CFA Senior Director +1 212 908 9113 Media Relations: Sandro Scenga, New York, Tel: +1 212-908-0278, Email: sandro.scenga@fitchratings.com; Leslie Tan, Singapore, Tel: +65 67 96 7234, Email: leslie.tan@fitchratings.com; Leni Vu, Sydney, Tel: +61 2 8256 0326, Email: Leni.Vu@fitchratings.com; Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: wailun.wan@fitchratings.com. Additional information is available at www.fitchratings.com. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.