{"id":13420,"date":"2021-01-15T11:06:12","date_gmt":"2021-01-15T11:06:12","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=13420"},"modified":"2026-04-23T22:40:24","modified_gmt":"2026-04-24T01:40:24","slug":"genting-gets-negative-rating-after-new-covid-19-restrictions","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/genting-gets-negative-rating-after-new-covid-19-restrictions","title":{"rendered":"Genting gets negative rating after new Covid-19 restrictions"},"content":{"rendered":"\n

Genting Bhd has been rated negatively by Moody’s due to new restrictions in Malaysia.<\/p>\n\n\n\n\n\n\n\n

Malaysia.- Moody’s Investors Service has ranked Genting Bhd as negative<\/strong> due to the \u201cdeteriorating situation\u201d in Malaysia regarding Covid-19.<\/p>\n\n\n\n

It has given the casino operator a Baa2 negative qualification<\/strong>, which means a moderate credit risk for the parent company of several casino businesses around the world.<\/p>\n\n\n\n

Analysts Junling Tan, Yu Sheng Tay and Vikas Halan said the outlook in Malaysia \u201ccould derail earnings recovery and exacerbate [Genting Bhd\u2019s] already-weak credit metrics”. <\/p>\n\n\n\n

Resorts World Genting has reduced its operating capacity<\/strong> due to a new movement control order mandated by the Malaysian government to contain the spread of the Covid-19<\/a><\/em><\/strong>.<\/p>\n\n\n\n

Moody’s said: \u201cA delay in recovery in the Malaysian leisure and hospitality segment, which contributes around 34 per cent of Genting Bhd\u2019s consolidated EBITDA could lead to leverage increasing to around 7.3 times in 2021.<\/p>\n\n\n\n

\u201cWe expect that Resorts World Genting\u00a0will\u00a0receive less visitors because of travel\u00a0restrictions, social distancing and density control\u00a0measures, as well as health and safety concerns”.<\/p>\n\n\n\n

However, the ratings agency said Genting will have \u201cexcellent consolidated liquidity\u201d, with MYR29bn (US$7.19bn) in cash and equivalents, and gross balance sheet debt of MYR38bn as of September 30, to \u201csupport its ability to weather the temporary deterioration of earnings\u201d.<\/p>\n\n\n\n

It concluded: \u201cGenting Bhd\u2019s operating cash flow of around MYR4.5 billion over the next 15 months will be sufficient to cover an estimated capital spending and investment of around MYR13 billion and an estimated dividend payout of around MYR2.6 billion.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Genting Bhd has been rated negatively by Moody’s due to new restrictions in Malaysia.<\/p>\n","protected":false},"author":2,"featured_media":13426,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Moody's Investors Service has assigned a Baa2 negative qualification to Genting Bhd, citing deteriorating conditions in Malaysia due to COVID-19 restrictions impacting Resorts World Genting's operational capacity and earnings recovery. This outlook could exacerbate credit metrics, with leverage potentially rising to 7.3x in 2021, despite Genting Bhd's robust consolidated liquidity of MYR29bn.","focusai_entities":"Genting Bhd, Moody's Investors Service, Resorts World Genting, Junling Tan, Yu Sheng Tay, Vikas Halan","focusai_location":"Malaysia","focusai_target_profile":"ceo_executive (0.95), regulator (0.7), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.75), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Impact on Regional Expansion?","query":"How might Genting Bhd's weakened credit metrics and domestic operational challenges influence its capital allocation strategies for international gaming verticals or M&A opportunities?"},{"label":"Liquidity Burn Rate?","query":"Given the projected MYR13 billion in capital spending and MYR2.6 billion in dividends, what is the estimated liquidity burn rate for Genting Bhd under prolonged Malaysian movement control orders, and how does this affect its debt covenants?"}],"footnotes":""},"categories":[160,163,16333],"tags":[19394],"class_list":["post-13420","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia-pacific","category-finance-news","category-south-east-asia-news","tag-genting-malaysia"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/13420","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=13420"}],"version-history":[{"count":6,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/13420\/revisions"}],"predecessor-version":[{"id":13432,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/13420\/revisions\/13432"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/13426"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=13420"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=13420"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=13420"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}