Fitch Ratings expects Macau’s economy to register an annual contraction of 16 percent in 2015, but kept the AA- rating in its most recent assessment of the territory, the Macau Monetary Authority said Saturday.
The agency expects gross gaming revenue to drop about 30 percent this year, a factor that will lead to a contraction of 15 percent of the territory’s economy, given its high dependence on this sector which is also highly vulnerable to China’s policies.
Fitch Ratings stressed, however, that all Macau casinos remain profitable, unemployment remains low and new hotels are to open between 2016 and 2017.
Maintaining the credit rating was based on the fact that “Macau has no debt and has a financial reserve that exceeds the value of gross domestic product and is sufficient to cover six times the value of budgeted public expenditure for the year.”
The agency also reported that gaming revenues will be characterised by the end of the year by a trend towards stability, estimating also that the completion of several projects related to tourism enterprises will capture more tourism from different sources, contributing to the diversification of the local economy . (macauhub/MO)