Fitch Ratings affirms BBB status for Genting Berhad

All ratings carry a stable outlook.

Malaysia.- Fitch Ratings has affirmed Genting Berhad‘s long-term issuer default rating at BBB. The ratings for the wholly-owned subsidiaries, Genting Berhad Overseas Holdings Limited (GOHL) and Resorts World Las Vegas LLC (RWLV), have been affirmed at BBB and BBB-, respectively, with all ratings carrying a stable outlook.

Fitch has also confirmed the BBB rating of the US$1.5bn senior unsecured notes due in 2027 guaranteed by GOHL. The ratings on RWLV’s US$1.75bn senior unsecured notes due in 2029, 2030, and 2031, as well as senior secured credit facilities, have been affirmed at ‘BBB-‘.

The rating agency noted: “GENT’s IDR reflects its status as the sole casino-licence holder in Malaysia, whose high share of domestic visitors provides a consistent and predictable revenue stream, and its healthy share in Singapore’s duopolistic market.

“The rating also incorporates GENT’s robust diversification of gaming assets in the US and the UK, and cash flow from non-gaming businesses such as palm oil and energy. The stable outlook is based on our estimate that GENT’s proportionately consolidated EBITDA net leverage ratio will remain below 3.5x from 2024, a level consistent with its rating.”

See also: Genting Malaysia to offer additional US$100m in notes through subsidiaries

Key rating drivers

Fitch Ratings has revised up its revenue forecasts for 2024 and 2025 to 2019 levels as revenue in Malaysia, which contributes over 60 per cent of Genting Malaysia Berhad’s consolidated revenue, rose by 14 per cent year-on-year in the first half.

According to the rating agency, revenue growth was driven by a rebound in domestic traffic and an increase in international tourists, supported by the completion of repairs to an access road connecting Batang Kali to Genting Highlands in July.

Genting Singapore’s revenue, including from non-gaming activities, is expected to reach 2019 pre-Covid-19 levels this year. International visitor arrivals to Singapore reached 88 per cent of the pre-pandemic level in the first half of the year, mainly due to visa-free travel with China.

See also: Genting Singapore posts net profit of US$271.4m for H1