Moody's stamps negative rating outlook on Asia's gaming sector
Credit ratings firm Moody's said Thursday it has a "negative" outlook for Asia's gaming sector in the next 12-18 months due to the economic uncertainty.
Casino operators in Asia's gaming haven of Macau will be the most affected, with the industry in Australia and Malaysia also expected to be hit, it said in a report.
"As in the US, the gaming sector in the Asia-Pacific is facing increasing operating pressures, which vary by company and country," it said.
Cutbacks in discretionary spending, intense local competition and regulations on travel are expected to hurt the earnings of casino operators, Moody's said.
"In addition to these immediate concerns, gaming operators face the challenge of managing large acquisitions or capital expenditure in an uncertain environment," it said.
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