...A Choppy Year: The gaming industry will experience a choppy year with tough Macau comparisons in the first half, REIT spinoffs and supplier merger integration costs. Heightened Credit Risks: U.S. gaming sector credit risks are looking less palatable in 2015. Regional operators' FCFs, which seemed quite robust at the same time last year, are starting to look more fragile after the weak 2014 trends, REIT spinoff announcements and the potentially more imminent rise in short-term interest rates. Suppliers' leverage profiles are entering uncharted territory following the recent consolidation. Bright spots include the Las Vegas Strip and Macau, despite the latter's recent weakness. Regionals Weakness: Fitch Ratings continues to hold that regional gaming is in a slow secular decline. However, in 2015 new competitive openings will be benign and comparisons to 2014 should be easy, providing some reprieve. Secular pressures include proliferation of alternative forms of gambling, potentially lower...
