Genting New York LLC – a United States-based unit of global casino business Genting Malaysia Bhd – could be insulated from “air travel woes” linked to the global oil crisis, as its customer base is “mostly” domestic, says Fitch Ratings Inc.
The institution expressed the view in a Sunday rating commentary action on proposed perpetual securities of GOHL Capital Holdings Ltd, a funding vehicle wholly-owned by Genting Overseas Holdings Ltd (GOHL). Fitch gave those securities a ‘BB+’ rating, and characterised them as “hybrid” instruments.
Fitch stated referring to the Malaysia-based parent company, Genting Bhd: “Although the proposed hybrid improves credit metrics, incremental earnings and demonstrated commitment to deleveraging are key for Genting Bhd to maintain its rating.”
The Genting parent is evaluated as ‘BBB’ with a ‘stable’ outlook, the same as its United States-based casino-group peer, Las Vegas Sands Corp.
Fitch added regarding the outlook for the Genting family of businesses: “Second-quarter 2026 is especially important, as the economic impact of the Iran war will become clearer and Genting New York LLC” – (‘BBB-‘ with a ‘negative’ outlook) – “will have rolled out its new gaming tables and its outperformance, relative to our forecasts, could mitigate the forecast rise in leverage.”
Fitch added: “With a mostly domestic customer base, Genting New York will be somewhat insulated from air travel woes.”
Genting New York was approved in December for a full commercial casino licence by the New York State Gaming Commission in the U.S.. That will involve expansion and upgrade for its existing Resorts World New York City (RWNYC) property (pictured), in Queens, New York City.
Fitch estimated Genting New York would generate earnings before interest, taxation, depreciation and amortisation (EBITDA) of around US$215 million in 2026 as the RWNYC casino ramps up, with annual EBITDA to reach US$460 million by 2028.
“However, delays in ramp-up by Genting New York or its inability to convert its asset into a high-margin casino, together with slower recovery at Genting Bhd’s other gaming operations, are risks to our forecast deleveraging path,” Fitch suggested.
The rating house added: “Macroeconomic uncertainties, including potential second-order impact from a prolonged Iran conflict, which may affect tourism arrivals and consumer sentiment, could also affect operations and profitability.”
GOHL is the holding entity for the parent Genting Bhd’s stake in Genting Singapore Ltd, operator of the Resorts World Sentosa complex in Singapore.
GOHL’s proposed perpetual securities – to be issued in two tranches and fully guaranteeed by GOHL – are hybrid instruments that are rated two notches below GOHL’s long-term issuer default rating, Fitch said.
“Fitch estimates GOHL will receive sufficient dividends from Genting Singapore… to cover the interest expense on its perpetual securities by around 1.4x,” wrote Fitch Ratings’ analysts Charlene Wong, Kah Ling Chan and Vicky Melbourne.
They also noted: “Fitch forecasts Genting Singapore to pay yearly dividends of SGD250 million [US$196.5 million] to GOHL to service the perpetual securities’ coupon.”
The proposed perpetual securities should help improve the credit metrics of Genting Bhd, which is now deemed on “negative outlook” reflecting the risk “it may be unable to deleverage to a level consistent with its rating”.
That was amid Genting Bhd’s “large” capital expenditure plans and investments, including the acquisition of an additional stake in Genting Malaysia Bhd, Fitch remarked.
