Moody’s Identifies Las Vegas Sands Development Commitments as Key Credit Concern Despite Strong Liquidity

Moody’s Ratings has identified Las Vegas Sands Corp’s substantial development commitments as a key concern for the group’s credit profile. The US$8-billion expansion of Marina Bay Sands in Singapore ranks among the primary issues, alongside the possibility of additional integrated resort projects that could produce periods of elevated leverage if financed materially with debt.

The agency assigns a Baa3 senior unsecured rating to Las Vegas Sands with a stable outlook and a Baa2 senior unsecured rating to its Macau unit Sands China Ltd, also with a stable outlook. Continued dividends, share repurchases and the use of secured debt to fund developments further constrain the credit profile, Moody’s stated in its recent credit opinion, as first reported by GGRAsia.

Capital Expenditure and Singapore Performance

Las Vegas Sands spent approximately US$2.02 billion on capital expenditure in 2025, including US$848 million in land premium payments, with a further US$1.49 billion of such payments scheduled for 2026. The group maintains a US$5.88-billion delayed-draw term loan facility to fund the Marina Bay Sands expansion after completing the US$750-million second phase of renovations at the property’s hotel Tower 3.

Marina Bay Sands generated US$2.92 billion in adjusted property EBITDA in 2025, representing a 52.3-percent margin. Second-quarter 2026 EBITDA was US$689 million on revenue of US$1.38 billion. Moody’s expects leverage to remain at about 3.4 times over the next 12 to 18 months, with improvement once the expansion completes.

Macau Investment and Liquidity Position

In Macau the group continues a multiyear investment programme that includes refreshing all 2,900 rooms and suites at The Venetian Macao, with completion targeted for Chinese New Year 2028. Sands China reported adjusted property EBITDA of US$430 million for the second quarter this year, down from US$566 million a year earlier, due to unusually low VIP rolling hold.

Moody’s forecasts Las Vegas Sands revenue of between US$13.8 billion and US$14.2 billion over the next 12 to 18 months, against US$13.7 billion in the 12 months to June 30, with an EBIT margin of between 24 percent and 26 percent. The agency expects debt-to-EBITDA to stay in the low 3-times range. Liquidity is described as strong, with US$3.38 billion in unrestricted cash and cash equivalents as of June 30 plus US$4.26 billion available under revolving credit facilities.

Reporting: GGRAsia

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