Moody’s Ratings has affirmed issuer ratings for Genting Berhad and Genting Overseas Holdings Limited (GOHL) at Baa2, while granting Genting Singapore Limited an A3 rating, all with a stable outlook, indicating Moody’s confidence in these companies’ future performance.
According to Moody’s Ratings Analyst Yu Sheng Tay, these ratings reflect expectations of stable operating performance and steady cash flow generation, driven by Genting’s diversified gaming operations and strong market positions in key regions like Singapore and Malaysia. However, Tay noted that Genting’s expansion plans, especially in New York, could lead to increased debt, potentially affecting the ratings negatively.
Genting Berhad’s Baa2 rating is supported by its geographically diversified gaming operations spanning Asia, EMEA, and the Americas, along with its duopoly and monopoly positions in Singapore and Malaysia, which contributed 72% of segment EBITDA in the first half of 2024. Moreover, non-gaming ventures such as energy and plantations add to earnings diversification.
Looking ahead, Moody’s anticipates that Genting Berhad’s EBITDA will grow by approximately 4 to 5 percent annually in 2024 and 2025, up from MYR10 billion ($2.3 billion) in 2023, driven by gaming operations in Singapore and Malaysia, along with a smaller contribution from Las Vegas. Despite ongoing regulatory complaints related to Resorts World Las Vegas LLC and a minority shareholder dispute at Resorts World Bimini, these issues are expected to have limited financial impact.
The A3 rating for Genting Singapore highlights its strong position as one of only two licensed casino operators in Singapore, with full ownership of the integrated resort, Resorts World Sentosa (RWS). Although hotel renovations have temporarily reduced operational capacity, Genting Singapore’s EBITDA is expected to reach SG$1.3 billion ($98 million) by 2025. The company is investing SG$6.8 billion ($5.1 billion) in expanding RWS, funded primarily through internal cash reserves and maintaining minimal debt.
GOHL’s Baa2 ratings reflect its reliance on dividends from Genting Singapore to meet interest expenses, posing structural subordination risks. GOHL’s credit quality remains closely linked to Genting Berhad’s performance, with the challenge of refinancing or redeeming $1.5 billion in notes due in 2027. The stable outlook for GOHL aligns with Genting Berhad, underscoring their operational interconnectedness.
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