Fitch downgrades SJM Holdings amid slower recovery concerns

The ratings agency lowered the Macau operator’s long-term issuer default rating to B+ from BB-.

Macau.- Fitch Ratings has downgraded the Long-Term Foreign-Currency Issuer Default Rating of SJM Holdings to B+ from BB-, while maintaining a stable outlook. It said the downgrade reflects expectations that leverage will remain above the thresholds previously associated with its BB- rating over the next two years.

Meanwhile, the agency forecasts EBITDA leverage to improve to 7.8x in 2026 and 6.5x in 2027, down from more than 9x in 2025, but still significantly above its previous downgrade threshold of 5.0x.

“SJM’s overall market share fell to 9.6 per cent in 1Q26, below our previous assumption of 10.7 per cent for 2026,” Fitch said, while noting that the company is seeking to recover share by increasing use of returned satellite tables and opening new gaming areas at GLP and Casino Lisboa.

The agency expects EBITDA growth to be supported by improved margins after the end of the low-margin satellite casino model, as well as contributions from self-operated casinos, including the recently acquired Casino L’Arc. Fitch forecasts adjusted EBITDA of HKD3.7bn in 2026 and HKD4.2bn in 2027, compared to HKD3bn in 2025.

However, Fitch warned that GLP’s contribution is likely to remain limited amid a highly competitive environment and product offering constraints. The report noted that mass gaming volume growth at GLP slowed to 3 per cent year-on-year in the fourth quarter of 2025 and declined 1 per cent year-on-year in the first quarter of 2026.

Fitch expects Macau’s gross gaming revenue to grow 5 per cent in 2026 and 2 per cent annually from then on. It expects SJM’s market share to remain between 9.7 per cent and 9.8 per cent through 2028.

Despite the downgrade, Fitch said SJM’s liquidity position remains adequate. The company refinanced bonds maturing this year through a US$540m senior notes issuance and expanded syndicated loan facilities, while maintaining available cash and undrawn revolving credit lines sufficient to cover upcoming maturities.

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See also: Moody’s downgrades SJM Holdings and revises outlook

The ratings agency lowered the Macau operator’s long-term issuer default rating to B+ from BB-. Macau.- Fitch Ratings has downgraded the Long-Term Foreign-Currency Issuer Default Rating of SJM Holdings to B+ from BB-, while maintaining a stable outlook. It said the downgrade reflects expectations that leverage will remain above the thresholds previously associated with its…