Casinos in Singapore: Moody’s affirms A3 credit rating for Genting Singapore

The rating agency has also affirmed Genting Singapore’s outlook as stable.

Singapore.- Moody’s Investors Service has affirmed Genting Singapore‘s credit rating at A3, indicating upper-medium grade and low credit risk. The outlook for the company remains stable. Analysts said Upward movement of the rating was unlikely, “given Genting Singapore’s small scale compared with its global peers and its concentration in Singapore.”

Moody’s expects the company’s earnings before interest, taxation, depreciation and amortisation (EBITDA) to reach SGD1.2bn (US$906.8m) this year, reflecting a slight increase as demand has softened amid economic uncertainty. Analysts noted that the casino operator’s operational capacity has temporarily fallen due to the closure of a hotel for renovations. They forecast that EBITDA will grow to SGD1.3bn in 2025 as new attractions open gradually.

Moody’s noted that Genting Singapore is modernising offerings at Resorts World Sentosa (RWS) as part of its casino licence extension until 2030, with an investment of SGD6.8bn: “Although the amount is significant, the capital expenditure will be spread across multiple years, peaking at an estimated SGD1 billion per annum between 2027 and 2029.”

See also: Nomura expects stronger H2 performance for Genting Singapore

Genting Berhad

Moody’s said it does not expect significant financial repercussions or operational disruptions to Genting Singapore’s parent company, Genting Bhd, from a regulatory complaint related to its operations at Resorts World Las Vegas, or a complaint from a minority shareholder of Resort World Bimini in the Bahamas. It reaffirmed a Baa2 issuer rating for Genting Bhd, maintaining a stable outlook.

Analysts predicted that Genting Berhad’s EBITDA will increase by 4 to 5 per cent per year in 2024 and 2025 due to gaming activities in Singapore and Malaysia, with lesser input from Las Vegas.

For the second quarter of the year, Genting Malaysia’s revenue was up 8 per cent year-on-year to MYR2.6bn (US$619m). Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 72 per cent year-on-year to MYR770.4m (US$179m) and the company’s profit more than doubled to MYR62.8m (US$14.6m).

The leisure and hospitality sector in Malaysia, which includes casino operations, generated revenue of MYR1.61bn (US$376m), up 5 per cent compared to last year. This was predominantly due to a higher volume of business from Resorts World Genting (RWG)’s gaming and non-gaming segments.

See also: Genting Malaysia unit redeems US$276.9m in medium-term notes