Moody's rates SJM Holdings notes Ba2

Moody's Investors Service said it assigned a first-time Ba1 corporate family rating to SJM Holdings Ltd. and a Ba2 backed senior unsecured rating to the proposed notes to be issued by Champion Path Holdings Ltd. and guaranteed by SJM Holdings.

The outlooks are negative.

SJM plans to use 90% of the proceeds of the notes for refinancing of its existing term loans, and the remainder for general corporate purposes.

“SJM's Ba1 CFR is mainly underpinned by its established gaming operations in Macao SAR, the expected earnings contributions from its new integrated resort in Cotai, and its conservative financial track record,” said Sean Hwang, a Moody's assistant vice president and analyst, in a news release.

“These strengths are counterbalanced by SJM's currently sluggish operations amid the pandemic, the ramp-up risk associated with its soon-to-open Grand Lisboa Palace (GLP) project in Cotai, and the company's geographic concentration in Macao SAR.”

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