Genting Singapore Ltd, operator of Resorts World Sentosa, has “excellent” liquidity and is expected to have sufficient cash to fund the Singapore gaming complex’s ongoing upgrade to facilities and expansion – known as RWS 2.0 – without the need for extra debt finance, says Moody’s Ratings.
While Genting Singapore has “strong” credit metrics, its credit rating is constrained at “no more than two notches” above its ultimate parent, Malaysia-listed Genting Bhd, the ratings agency also remarked.
In its Wednesday opinion, Moody’s said it expected Genting Singapore would maintain its net cash position over the remainder of 2025 and 2026.
For RWS 2.0, the “total expansionary cost is around SGD6.8 billion (US$5.2 billion) including the amount already spent,” said the institution.
“This will be spread across the next five years, with capital spending peaking at around SGD1 billion per year between 2027 and 2028,” it added.
“Given its sizable cash balances of SGD3.3 billion as of June 30, 2025, Genting Singapore is likely to have sufficient resources to fund the expansion without incurring additional debt,” said Moody’s.
Genting Singapore’s first-half results showed adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) fell 25.8 percent year-on-year, to SGD423.7 million.
In its Wednesday memo, Moody’s projected Genting Singapore’s 2025 full-year EBITDA to reach SGD1.1 billion, “broadly flat” versus 2024, due to disruptions relating to the revamp work at Resorts World Sentosa.
“As new attractions open and capacity recovers in the second half of fiscal year 2025, we project [Genting Singapore’s] EBITDA to rise to around SGD1.3 billion in 2026,” the ratings agency also suggested.
The institution also expected Genting Singapore to generate operating cash flow of around SGD1 billion annually, which Moody’s said could help fund a portion of the company’s capital spending.
“At the same time, we do not expect the company to increase its dividend payout ratio to support its parent,” stated Moody’s.
While Genting Singapore is historically the largest contributor of earnings to its ultimate parent Genting Bhd, the Singapore-listed operator has a “degree of independence” as a listed company, remarked the ratings house.
Nonetheless, on October 16, Moody’s had placed Genting Singapore’s ‘A3’ investment-grade rating on review for downgrade, reflecting the constraints of its parent Genting Bhd’s “weaker credit quality”.
Moody’s stated that “given the links between Genting Singapore and its ultimate parent, Genting Bhd… Genting Singapore’s rating will remain constrained at no more than two notches above that of Genting Bhd.” The Genting parent’s current medium-grade ‘Baa2’ rating – indicating moderate credit risk – is itself under review for possible downgrade, observed Moody’s in the memo.
“The gap between the two companies’ ratings could narrow if we assess that Genting Singapore’s independence in decision-making has diminished, resulting in increased cash leakage from Genting Singapore to Genting Bhd in the form of dividends or through other measures,” remarked Moody’s.
