Loss-making United States-based casino business Empire Resorts Inc, affiliated with global gaming group Genting Malaysia Bhd, has had its long-term issuer credit rating downgraded to ‘B’, from ‘B+’, by S&P Global Ratings, on “rising refinancing risk”.
“The negative rating outlook reflects the rising refinancing risk related to Empire’s bond maturing in November 2026,” the ratings agency stated in a Wednesday report.
That US$300-million bond is due in November 2026, the institution said.
“We believe the U.S.-based gaming operator’s cash flows and liquidity will be significantly strained, absent a timely and successful refinancing,” it added.
S&P also lowered the issue rating on the company’s secured debt to ‘B’ from ‘B+’.
According to the institution, Empire Resorts “has yet to make any material progress regarding its bond maturing in November 2026”.
“A successful refinancing depends on elements beyond Empire’s control, including the market environment, investors’ risk appetite, and yield conditions,” S&P noted.
“Coupled with the bond maturity within nine months, these factors could push out refinancing,” S&P said. “We have therefore revised downward our assessment of the company’s stand-alone credit profile to ‘ccc’ from ‘ccc+’,” it added.
Empire Resorts owns three businesses in the U.S. state of New York: the upstate casino complex Resorts World Catskills (pictured); Resorts World Hudson, a casino offering video lottery terminals; and mobile sports betting operation Resorts World Bet.
S&P estimates Empire’s unrestricted cash balance and operating cash flow “will be less than US$20 million for the 12 months ending December 31, 2026”.
S&P also said ongoing support from Genting Malaysia “will bolster Empire’s liquidity”.
“A US$20 million advance by Genting Malaysia to Empire in January 2026 will help the subsidiary meet its liquidity needs over the next 12 months, excluding the bond repayment,” the institution noted.
“We see this inflow as critical to the company, given its operations are yet to become self-sustaining,” S&P said.
“Although the company’s EBITDA [earnings before interest, taxation, depreciation, and amortisation] has turned positive since 2021, operating conditions remain challenging, and we continue to forecast negative free operating cash flow over 2026-2028,” it added.
“Empire’s shelving of a proposed sale of non-gaming assets last year has delayed the refinancing process,” S&P said.
That was a reference to a proposal by Empire Resorts to sell the non-gaming assets of Resorts World Catskills, in upstate New York, to Sullivan County Resort Facilities Local Development Corp, for US$525.0-million in cash.
However, that transaction was suspended following a takeover bid by Malaysian conglomerate Genting Bhd, the ultimate parent, for Genting Malaysia.
S&P said its rating on Empire reflected its view that the “Genting group will continue to provide support” to the U.S.-based casino firm.
“We believe Empire’s status as a going concern is important for the preservation of Genting’s reputation, as well as the group’s relationship with the New York state gaming regulators,” the rating agency stated.
“We believe the [Genting] group is involved with Empire’s refinancing, and could provide support should other refinancing options fail,” it added.
In December, Genting New York LLC, another unit of Genting Malaysia, was awarded a full casino licence for downstate New York. Linked to the permit, the group has said it expects to open the first phase of the expansion of its Resorts World New York City complex by “the second quarter of 2026”.
