Moody’s Ratings says it expects SJM Holdings – the Hong Kong-listed parent company of Macau concessionaire SJM Resorts S.A. – to reduce its financial leverage substantially in 2026 on higher EBITDA and modest debt reduction.
It also expects SJM’s liquidity to be good, aided by the proposed issue of new senior unsecured notes, growth in gaming revenues and normalization of win rates at its Macau resorts.
Having this week assigned a B1 rating to SJM’s proposed notes, which remain unpriced at time of writing, and maintained its Ba3 negative rating on SJM. Holdings, Moody’s said it estimates the company’s Adjusted debt/EBITDA leverage rose from 7.4x at 30 June 2025 to between 8.3x and 8.7x at the end of the year, impacted by its weak 3Q25 earnings and the debt-funded acquisition of former satellite casino L’Arc Macau.
