Moody’s Ratings and CreditSights Inc have described Genting Malaysia Bhd’s move to acquire full control of loss-making Empire Resorts Inc. as “credit negative”, citing concerns about financial exposure and related-party transactions.
The US$41-million all-cash deal, to be funded by internal resources, involves purchasing the remaining 51?% of Empire not already owned by Genting Malaysia. The transaction also includes transferring a US$40-million debt previously owed to the Lim family’s investment vehicle to Genting Malaysia.
Moody’s highlighted that Empire’s ongoing losses and weak financials remain a burden. Despite receiving around US$750 million in equity support, the company posted a net loss of US$59 million in 2024.
CreditSights, while maintaining its “outperform” rating, noted that the acquisition could increase Genting Malaysia’s pro forma net leverage by 0.3 to 0.4 times, and raise concerns over related-party governance.
Maybank Investment Bank has also downgraded its earnings forecasts for Genting Malaysia by 2% to 4% for FY2025–2027, due to the higher effective stake in Empire.
While the acquisition bolsters Genting’s presence in New York, the outlook for Empire Resorts’ earnings remains weak, according to analysts.
Empire Resorts is a U.S.-based gaming and entertainment company whose mission is to provide a winning combination of high-quality entertainment, luxurious facilities, and exceptional customer service, with the goal of increasing shareholder value and maintaining strong relationships with employees, customers, and communities.
The company operates in the state of New York and is best known for managing:
Resorts World Catskills: a high-end casino resort featuring a hotel and a wide range of leisure offerings.
Resorts World Hudson Valley: a gaming venue equipped with video lottery terminals (VLTs).
Resorts World Bet: a mobile sports betting platform.
18+ | Juegoseguro.es – Jugarbien.es
