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(The following was released by the rating agency)
HONG KONG (Standard & Poor's) Nov. 13, 2012--Global economic uncertainties and the lack of new supply in the next 12 months could start to chip away at growth rates in some Asia-Pacific gaming markets.
However, casino operators in the region are likely to use their improving financial capacity to aggressively bid for licenses and invest billions of dollars in gaming projects. That's according to an industry report card, titled "Asia-Pacific Gaming: Likely Revenue Slowdown Won't Derail Growth Plans," that Standard & Poor's Ratings Services published today.
"In 2013, we expect revenue to increase only moderately in Singapore and revenue growth to slow in Macau, with the growth in both markets coming off high bases. But we anticipate that growth will remain solid in Australia and in the Philippines," said Standard & Poor's credit analyst Joe Poon.
The report analyzes trends in gaming markets in Macau, Singapore, Australia, New Zealand, and the Philippines. The Philippines' gaming industry was the fastest-growing gaming market in the Asia-Pacific after Macau and Singapore last year. It should continue to grow at a strong pace over the next few years as operators provide more product offerings and disposable incomes rise.
Standard & Poor's believes that Asia-Pacific gaming operators are better positioned now than they were in 2008, when the global financial crisis began to hit. They are more likely to accommodate the risks associated with investments in new gaming developments and any moderation in gaming demand.
"Asia-Pacific gaming operators are generating healthy cash flows and liquidity has strengthened, even for those with previously weak liquidity positions. Given the mix of opportunities and risks, we stand by our stable outlook for the sector," said Mr. Poon.
-- U.S. Gaming, Lodging, And Leisure Sectors Will Likely Maintain Modest Growth Overall Through 2013, Oct. 1, 2012 -- Business And Financial Risks In The U.S. Gaming Industry, Sept. 25, 2008 -- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008