Macau's proposed Gaming Bill moderates license renewal risks

HONG KONG --- Macau's proposed gaming law amendment signals lower license renewal risks for rated issuers, according to global ratings agency Standard and Poors.

"We continue to believe all six current concessionaires or sub-concessionaires are well-positioned to maintain their licenses through the new rebidding process," said S&P Global credit analyst Aras Poon.

The Government plans to grant up to six licenses with a 10-year term, shorter than the original 20 years. S&P says the shorter tenure was not unexpected given that the original concession periods were designed to support initial development of the casino resorts and provide a reasonable return period.

"We believe the shorter concession length is aimed at giving the government tighter control over the industry," S&P says. "The focus, in our view, is on providing authorities increased flexibility to adapt to changing industry conditions and development needs."

www.standardandpoors.com (ATI)