Genting Malaysia’s second-quarter 2022 results showed a robust recovery in gaming revenue, according to Fitch.
Malaysia.- Fitch Ratings has upgraded Genting Malaysia’s long-term Issuer Default Rating (IDR) from “negative” to “stable”. The credt rating agency has also affirmed Genting’s issuer default ratings at BBB.
Fitch says that Genting Malaysia sees a stable outlook driven by a strong recovery of gaming revenue, particularly in Malaysia and the US after Covid-19 restrictions were eased. The recovery was evident in second quarter financial results.
Genting Malaysia reported that revenue was up 166 per cent year-on-year to MYR2.18bn (US$486.5m) in the second quarter. The company said the improvements were primarily due to an overall higher volume of business at Resorts World Genting (RWG) as a result of the eased travel restrictions in the country.
Fitch expects Malaysia’s revenue, which accounted for nearly 35 per cent of Genting Group’s pre-pandemic consolidated sales, to recover to more than 75 per cent of 2019 levels this year and around 95 per cent by 2023. Limited reliance on foreign tourists and the addition of the Genting Sky World theme park should support a strong recovery.
In addition to a high share of domestic visitors in Malaysia, the company also holds a healthy share of Singapore’s duopolistic market. Fitch affirmed Genting’s senior unsecured debt rating at ‘BBB’ while simultaneously withdrawing the rating as the company is no longer issuing senior unsecured debt.