Analysts at Moody’s Investors Service have said the casino operator can fund the expansion of Resorts World Sentosa without incurring additional debt.
Singapore.- Moody’s Investors Service has said that Genting Singapore can complete its planed S$400m (US$297.8m) investment to upgrade attractions and refurbish three hotels at Resorts World Sentosa (RWS) without taking on more debt.
It said its ‘A3’ issuer rating for the operator reflects the company’s liquidity strength and its ability to fund the expansion of its casino complex. Genting’s planned improvements are part of a S$4.5bn spending commitment to the Singapore government announced by Genting Singapore in April 2019 under which it will retain half of the Singapore casino duopoly until 2030.
The casino operator said it will add a new zone to its Universal Studios theme park. It will also renovate three of its hotels: Hard Rock Hotel Singapore; Michael’s Hotel; and Festival Hotel, which together offer more than 1,200 rooms.
Genting Singapore had a cash balance of about S$3.3bn by the end of 2021. Analysts at Moody’s expect the gaming operator could maintain a strong net cash position through 2022 and 2023. The rating agency estimates that Genting Singapore’s revenue will increase from S$1.07bn in 2021 to S$1.61bn in 2022 and S$2.23bn in 2023.