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Fitch Ratings Inc has raised the issuer default ratings of Las Vegas Sands Corp and its subsidiaries to ‘BBB’, assigning a ‘stable’ outlook to the group. The upgrade moves the casino operator further into investment-grade territory and reflects a mix of stronger balance sheet metrics, a powerful rebound in Singapore, and a Macau recovery that is still unfolding more slowly than expected.
Rating Upgrade Backed by Marina Bay Sands
In its February 6 report, Fitch said the new rating is underpinned by improved credit measures, solid performance in Singapore, and a Macau comeback that continues, though at a slightly weaker pace than earlier expectations. The agency pointed out that Las Vegas Sands benefits from its large scale in Macau, strong competitive positions in both Macau and Singapore, and healthy free cash flow generation. At the same time, it flagged the group’s heavy capital spending plans and possible softness in the Chinese economy as ongoing constraints.
A ‘BBB’ grade, according to Fitch’s own scale, signals good credit quality and low default risk, placing Las Vegas Sands firmly within the investment-grade category. The group holds Marina Bay Sands in Singapore through its subsidiary Marina Bay Sands Pte Ltd, while its Macau subsidiary, Sands China Ltd, operates 5 casino properties in Macau, including The Londoner Macao. Fitch also upgraded the senior unsecured bonds and revolving credit facilities at Las Vegas Sands and Sands China to ‘BBB’, and upgraded the secured revolver and term loan at Marina Bay Sands Pte to the same level.
Singapore Delivers Record EBITDA
The upgrade follows a strong set of 2025 results. Las Vegas Sands revealed its net income for the full year of 2025 at $1.63 billion, up from 2024’s $1.45 billion, with net revenues rising 15.2 percent from last year to $13.02 billion. The company attributed this to Marina Bay Sands, citing the resort’s EBITDA.
For 2025, Marina Bay Sands’ adjusted property EBITDA reached $2.92 billion, a huge jump of 42.4 percent from the previous year. Revenue for Marina Bay Sands also rose 32.2 percent from last year, with the Singapore resort’s revenue at $5.59 billion. Fitch said that Marina Bay Sands continues to register very high EBITDA, which is driven by the quality of the asset, continued reinvestment in the property, and a premium customer base. However, Fitch also expects a less dramatic pace of EBITDA growth at the property going forward. It added that the Singapore market should continue to benefit from the strength of the local economy, rising tourist arrivals from non-Chinese source markets, and the eventual completion of the current refresh programme at the resort.
Macau Margins Held Back by Promotions
Conditions in Macau have been more challenging. Sands China ended the year 2025 with total net revenues of $7.44 billion, representing a 5.1 percent increase over the previous year, although its net income declined slightly to $901 million from $1.05 billion in 2024. According to Fitch, the recent performances in Macau have not met market expectations, particularly because of the buoyant promotional environment, mostly driven by the operators. Additionally, Fitch expects Macau’s EBITDA margins to stay at low 30 percent levels until its promotional environment improves. It also noted that the recovery in the base mass segment, particularly among unrated players, has taken longer than it had initially anticipated. Even with those headwinds, Fitch believes Las Vegas Sands’ extensive room inventory and large-scale amenities give it the ability to defend, and eventually expand, its market share in Macau over time. Margins are projected to improve once spending on promotions is scaled back.
Balance Sheet Discipline and Leverage Targets
Fitch estimated Las Vegas Sands’ 2025 EBITDA leverage at 3.3 times and net EBITDA leverage at 2.5 times, and said it expects similar levels across its forecast period. The agency stated that it believes the company will continue to manage its balance sheet in line with investment-grade standards, pointing to its track record of publicly outlining leverage policies and sticking to conservative financial management.
Management has communicated a gross target debt ratio in the range of 2.0 to 3.0 times before factoring in development projects, a level Fitch views as consistent with the new rating. The company currently has a share repurchase programme and has recently announced a dividend increase, but Fitch expects free cash flow to remain sufficient to support these shareholder returns while maintaining credit quality at ‘BBB’.
Source: GGR Asia
