Fitch Ratings Inc has affirmed the long-term issuer default rating of Malaysian casinos and plantations conglomerate Genting Bhd at “BBB” – i.e., investment-grade – and removed it from “rating watch negative” status.
The institution noted however in a December 22 memo that the outlook for Genting Bhd is “negative”.
It reflected the risk Genting Bhd “may be unable to deleverage to a level consistent with its rating”.
‘BBB’ ratings indicate that expectations of default risk are currently low, according to Fitch’s own definitions. Under that rating, the capacity for payment of financial commitments is considered adequate, but “adverse business or economic conditions are more likely to impair this capacity”.
Fitch removed the “rating watch negative” status from some Genting Bhd group firms: Genting Malaysia Bhd, Genting Overseas Holdings Ltd, Resorts World Las Vegas LLC, and Genting New York LLC, and assigned “negative” outlooks
Fitch analysts wrote regarding the parent: “The company spent MYR3.1 billion (USD700 million) to acquire an additional 23.8 percent stake in Genting Malaysia.”
The latter is a Malaysia-listed casino business with operations in Malaysia itself, as well as in the United States and the Bahamas, and the United Kingdom and Egypt.
An attempt by the Genting parent to take Genting Malaysia Bhd private “coincided” with its Genting New York LLC subsidiary’s “commitment to large capital expenditure for its [Resorts World] New York City… expansion” after winning a full downstate New York casino licence as confirmed earlier this month, further observed Fitch.
It added, referring to earnings before interest, taxation, depreciation and amortisation: “We believe the risk stems from Genting New York’s EBITDA potentially falling short of expectations at its expanded New York City asset from second-half 2026.”
The ratings house noted Genting New York had pledged US$5.5-billion of investment for Resorts World New York City, “of which US$1.1 billion has been spent”.
The remaining US$4.4 billion, phased over five years, “includes licence fees of a minimum US$500 million and US$350 million on renovation of existing facilities to be incurred in 2026”.
This would “pressure Genting New York’s credit metrics as development proceeds,” stated Fitch.
The ratings house noted that Resorts World New York City’s final bid submission for its full downstate casino rights had indicated that if other downstate licensees were “approved to operate with lower tax rates on slot machines or table games, Resorts World New York City’s proposed rates of 56 percent for slots and 30 percent for table games should likewise be reduced to maintain a level playing field”. Three downstate licences were awarded in total.
Fitch stated that factors with the potential to lead to “negative rating action/downgrade” for Genting Bhd were if the Genting New York unit’s “EBITDA ramp up is delayed or lower than our expectation such that EBITDA net leverage remains above 3.5 times”.
Factors that could lead to “positive rating action/upgrade” for Genting Bhd were that its outlook may be revised to “stable” if Genting New York’s EBITDA ramp up from second-half 2026 leads to EBITDA net leverage below 3.5 times”.
