• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

GEN Malaysia may deleverage within 2 years says Fitch

Apr 07, 2021 Newsdesk Latest News, Rest of Asia, Top of the deck  


GEN Malaysia may deleverage within 2 years says Fitch

Casino operator Genting Malaysia Bhd should be able to “deleverage in one or two years” thanks to “gradual” recovery in demand following the Covid-19 pandemic, and thanks to maintaining financial discipline and operating flexibility, coupled with moderating capital expenditure, says a Tuesday note from Fitch Ratings Inc.

Fitch expects Genting Malaysia’s earnings before interest, taxation, depreciation and amortisation (EBITDA) to return to pre-pandemic levels and net debt/EBITDA “to fall to below three times by end-2022 on healthy demand,” it stated.

On the outgoings side, “Genting Malaysia budgets MYR1 billion [US$242.0 million] of capital expenditure in 2021, and MYR500 million to MYR600 million annually thereafter, mainly for maintenance capex,” noted Fitch.

The institution noted Genting Malaysia was “on track” to open an outdoor theme park at its flagship property - Resorts World Genting, near the Malaysian capital Kuala Lumpur – as well as a hotel at Resorts World New York City, “in mid-2021”.

“Genting Malaysia expects the theme park to draw an additional 1.5 million to 2 million visitors per year to Resorts World Genting, and generate an additional MYR400 million to MYR500 million in revenue,” stated Fitch.

Fitch has issued a ‘BBB’ rating – investment grade – regarding some proposed U.S. dollar notes from Genting Malaysia. The institution also said Genting Malaysia’s long-term issuer default was ‘BBB’, with a ‘negative’ outlook.

The notes will be issued by Genting Malaysia Capital Labuan Ltd, a wholly-owned subsidiary of Genting Malaysia and guaranteed by Genting Malaysia.

The notes are rated at the same level as Genting Malaysia’s issuer default rating as they will constitute direct, unsecured and unsubordinated obligations of the company. The company plans to use the proceeds mainly to refinance debt, according to Fitch.

Genting Malaysia’s rating takes into consideration “its moderate linkage to its weaker parent, Genting Bhd… ‘BBB’/’negative’, and we rate Genting Malaysia based on Genting Bhd’s consolidated credit profile and the outlook is aligned with that of Genting Bhd”, said Fitch.

The institution said the ‘negative’ outlook “captures the risk of a slower gaming recovery from the coronavirus pandemic impact than we forecast, such that Genting Bhd’s leverage is elevated for an extended period.”

Fitch added: “This may result from recurring waves of infection, leading to sporadic lockdowns and continued strict social distancing.”

Resorts World Genting has had several periods of temporary shutdown recently due to the pandemic, the latest ending on February 16.

Genting Bhd’s indirect wholly-owned subsidiaries Resorts World Las Vegas LLC and Resorts World Las Vegas Capital Inc, which had last week priced their own offering of US$350-million of 4.625-percent senior notes, announced that these notes would be listed and quoted in the Singapore Exchange bond market with effect from 9am on Wednesday.


  • tweet
Related articles
  • GEN Malaysia stable outlook, rebound taking its time: Fitch
    GEN Malaysia stable outlook, rebound...

    Sep 21, 2023  

  • Positive momentum in U.S. for GEN Malaysia: Maybank
    Positive momentum in U.S. for GEN...

    Sep 11, 2023  

More news
  • Sands China to revitalise firecracker factory, old streets
    Sands China to revitalise firecracker...

    Sep 29, 2023  

  • Bloomberry aims to raise up to US$99mln via share sale
    Bloomberry aims to raise up to US$99mln...

    Sep 29, 2023  


Latest News

Sands China to revitalise firecracker factory, old streets

Sands China to revitalise firecracker factory, old streets

Sep 29, 2023  

Macau casino operator Sands China Ltd is to add more cultural and tourism elements to the site of the old Iec Long Firecracker Factory and its surrounding areas in Taipa, as part of a government-led...
Read More
Bloomberry aims to raise up to US$99mln via share sale

Bloomberry aims to raise up to US$99mln via share sale

Sep 29, 2023  

S.Korea Daegu Casino fined US$776k for AML breaches 

S.Korea Daegu Casino fined US$776k for AML breaches 

Sep 29, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”The Philippines has been the primary growth driver, but really the broader Asian gaming industry is something that’s really important to us”

Matt Wilson

Chief executive of casino equipment provider Light & Wonder



Most Popular

  • International Ent to invest at least US$1bln in Manila IRInternational Ent to invest at least US$1bln in Manila IR September 28, 2023
  • Resorts World Sentosa fined again for AML rule breachesResorts World Sentosa fined again for AML rule breaches September 27, 2023
  • Galaxy Ent to build ice rink, bookshop at Macau old shipyardsGalaxy Ent to build ice rink, bookshop at Macau old… September 28, 2023
  • Events a boon, Citi ups Macau 4Q GGR forecast to US$6.5blnEvents a boon, Citi ups Macau 4Q GGR forecast to US$6.5bln September 27, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us