Fitch downgrades Genting ratings
KUALA LUMPUR: Fitch Ratings has lowered its credit rating on Genting Bhd and its two subsidiaries, citing expectations that the group's debt burden will remain high in the next three years.
Fitch Ratings has reduced its credit rating for Genting Bhd and its subsidiaries, anticipating that the group's debt levels will stay elevated over the next three years. The agency estimates Genting's net debt will remain above four times its earnings during this period. Genting's pace of reducing debt is expected to be slow due to significant capital expenditures for expanding key properties, including those in Singapore and New York.
This situation is further exacerbated by a slower-than-anticipated earnings growth for Genting New York LLC, driven by high initial operating costs and a gradual recovery in other gaming operations. Fitch has lowered Genting's rating from BBB to BBB-; Genting Overseas Holdings Ltd's rating was downgraded to BBB- from BBB, while Resorts World Las Vegas LLC fell one notch to BB+.
Genting New York's capital expenditures are likely to stay high, averaging around US$800 million annually over the medium term. The agency anticipates Genting New York's earnings before interest, taxes, depreciation, and amortisation (EBITDA) will rise to US$208 million in 2026, slightly below the previously expected US$215 million due to high start-up costs.
The forecast assumes EBITDA from Genting New York will reach approximately US$450 million by 2028, as more tables and slot machines are added, and costs normalize. Gaming revenue in Singapore is also projected to remain flat this year due to renovations at its hotels and casino, with muted revenue growth expected for the Malaysian properties due to high travel costs and macroeconomic uncertainties.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
