Singapore: Genting impacted by “slow recovery”

According to a report from Standard & Poor’s, the company will depend on venues in other locations.

Singapore.- Genting Malaysia has had its BBB rating reaffirmed by S&P, which noted a negative outlook for the company.

The slow recovery of the economy in Singapore due to the pandemic is heavily impacting business for the casino and resorts firm. 

Without foreign visitors due to border restrictions, Resort Worlds Sentosa has been hit hard. International visitors usually make up 75-80 per cent of its business.

However, a faster recovery is expected at other locations where the company operates, including Malaysia, the UK and the US. 

According to S&P, leisure and hospitality EBITDA in Malaysia will reach 55-60 per cent of its 2019 levels next year, and will exceed that in 2022. 

For the group as a whole, S&P now sees EBITDA at 50-55 per cent of 2019 levels for next year, compared with a prior expectation for 75-80 per cent. Its debt-to-EBITDA ratio will hit 5.0x to 5.2x, before dropping back to 2.6x to 2.8x in 2022.

The report warns: “Based on the revised credit metrics, the current rating level does not have any tolerance for a weaker recovery scenario.”