The rating agency has warned that heavy spending on casinos in New York and Singapore could strain finances.
Malaysia.- S&P Global Ratings has changed its outlook for Genting Bhd and several gaming subsidiaries to negative. The decision is due to upcoming investment in casino projects that could push debt higher and weaken credit metrics in the short term.
The affected companies include Genting Bhd, Genting Malaysia Bhd, Genting New York LLC, and Resorts World Las Vegas LLC. S&P maintained the existing credit ratings but highlighted risks associated with high capital spending over the next two to three years.
Analysts expect Genting’s capital expenditure to double in 2026 and to be above MYR8bn (US$1.9bn) annually until 2030. Some 30 per cent will go to the expansion of Resorts World New York City, for which Genting received approval for a full casino licence, this week.
Genting plans to complete a US$5.5bn expansion by 2030. It must also pay US$600m up front for the 30-year licence. S&P estimates the upgraded New York casino could generate more than US$400m in annual EBITDA once at full speed. However, other investments, like the ongoing upgrade at Resorts World Sentosa in Singapore, are expected to take longer to pay off.
The rating agency noted that Genting Bhd’s moves to increase its stake in Genting Malaysia added to its spending. It forecasts that Genting Bhd’s debt will climb to MYR35bn (US$8,5bn) by 2028, up from MYR21bn (US$5,1bn) in 2024. Cash flow is expected to stay negative for three years, and leverage measures could drop below key thresholds through 2027.
The agency added that dividends may shrink to under MYR1.5bn (US$366m) annually through 2027 and that the group might need to sell non-core assets or find other ways to cut debt.
The rating agency has warned that heavy spending on casinos in New York and Singapore could strain finances. Malaysia.- S&P Global Ratings has changed its outlook for Genting Bhd and…
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