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Macau Biz: AMAX Ripple Effect?

Just a little quickie from CNNMoney. S&P Ratings have put the brakes on Galaxy Entertainment - changing its outlook from 'positive' to 'stable.' They didn't change Galaxy's credit rating, which is still a respectable B+.

The change was made to take into account...

...stronger-than-expected competitive pressure in the Macau gaming market, both in the mass and VIP segments.

S&P said competition among operators, which currently own a total of 29 casinos, will continue to increase significantly. Competition will be particularly intense in 2009, when more casinos are due to open -- either before or after Galaxy's integrated casino and entertainment resort, Galaxy Cotai Mega Resort opens on Macau's Cotai strip.

Galaxy Cotai Mega Resort is scheduled to open in May 2009.


Comments & Discussion:


I think the point is AMAX is a very strong collaborator that has been growing rapidly and is continuing to eat away market share from other operators such as Galaxy. Beyond that, I think they are saying with AMAX on MPEL's side, CoD is predicted to do better than Galaxy Cotai Mega Resort, which are expected to open at around the same time.

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