Moody’s Investors Service Inc has affirmed casino operator Genting Singapore Ltd’s “A3” credit rating, indicating upper-medium grade and low credit risk. It said the outlook for the company was “stable”.
Though the institution stated in a Monday memo: “Upward movement of the rating is unlikely, given Genting Singapore’s small scale compared with its global peers and its concentration in Singapore.”
The casino firm runs Resorts World Sentosa, one half of Singapore’s casino duopoly.
Moody’s stated, referring to earnings before interest, taxation, depreciation and amortisation: “We expect Genting Singapore to generate around SGD1.2 billion [US$906.8 million] of EBITDA in 2024, a modest increase from last year as demand has moderated amid economic uncertainty.”
The ratings agency said: “At the same time, Genting Singapore’s operating capacity has been temporarily reduced because of the closure of a hotel for renovations.
“Nonetheless, we project its EBITDA will rise to around SGD1.3 billion in 2025 as new attractions open in phases and its capacity recovers,” the institution added.
Moody’s noted that while Genting Singapore was expanding and refreshing its offerings at Resorts World Sentosa for a total cost of SGD6.8 billion, that included money already spent.
“Although the amount is significant, the capital expenditure will be spread across multiple years, peaking at an estimated SGD1 billion per annum between 2027 and 2029,” said the ratings house.
Moody’s also gave commentary on the parent, Malaysia’s Genting Bhd.
It said that while Genting Bhd was “subject to a regulatory complaint pertaining to its operations at Resorts World Las Vegas LLC, as well as a complaint by the minority shareholder of Resort World Bimini in the Bahamas, Moody’s “base expectations are that these complaints should not result in significant financial damages and disruptions to operations”.
Moody’s also affirmed the “Baa2” issuer ratings of Genting Bhd, with a “stable” outlook.
It said the parent’s rating reflected the “company’s geographically diversified gaming operations,” as well as its non-gaming businesses.
“Upward movement of the rating is unlikely because of Genting Bhd’s expansion appetite,” stated Moody’s.
It added: “However, we would consider an upgrade if the company continues to generate stable cash flow from its leisure and hospitality operations; executes its expansion plans in a financially prudent manner; and maintains excellent liquidity across the group.”
The ratings institution said its capital spending projections for Genting Bhd did “not take into account investments associated with a New York licence win, as it ultimately hinges on the awarding of the licence, which remains uncertain at this point.”
The casino group said it plans to invest up to US$5 billion if it gets one of the three likely downstate New York casino licences.
