Moody's puts Las Vegas Sands ratings on review

Moody's Investors Service on Friday placed its credit ratings of Las Vegas Sands Corp. and one of its subsidiaries under review for a possible downgrade, due to slower-than-expected growth amid a softening Las Vegas gambling market.

Las Vegas Sands owns the Venetian Resort Hotel Casino and the Palazzo Resort Hotel Casino located on the Las Vegas Strip. The decline in the Las Vegas gaming market has been worse than Moody's expected, with the weaker economy meaning Vegas has had fewer visitors staying for shorter periods and spending less money.

Those factors could make it difficult for Las Vegas Sands LLC to maintain the acceptable level of profitability in relation to its debt that is required to retain its current rating, Moody's said.

The ratings affected include the company's non-investment grade "Ba3" corporate family and senior notes ratings as well as Las Vegas Sands LLC's "Ba3" secured bank loan rating.

The company's speculative grade liquidity rating was lowered to "SGL-3" from "SGL-2."

Moody's said its review will focus on operating trends in the Las Vegas gaming market and their impact on Las Vegas Sands LLC's abilities to cut long-term borrowing while contributing to its parent company's global development.

The downgrade to "SGL-3" from "SGL-2" reflects Moody's concern that free cash flow over the next year will drop and prevent the company from increasing its earnings enough to meet certain bank requirements.

The ratings of Venetian Macao Ltd., a subsidiary of Las Vegas Sands Corp. which owns casino properties in China, were not affected by the ratings action.

Shares fell 33 cents to $37.41 in morning trading. The stock has ranged from $30.56 to $148.76 in the last 52 weeks.