S&P has downgraded Genting Berhad\u2019s credit rating from \u201cBBB\u201d to \u201cBBB-\u201d amid a rise in Covid-19 cases in Southeast Asia.<\/p>\n\n\n\n\n\n\n\n
Malaysia.-\u00a0Standard & Poors Global Ratings<\/strong>\u00a0has\u00a0downgraded Genting Berhad long-term issuer ratings<\/strong>\u00a0from \u201cBBB\u201d to \u201cBBB-\u201d.<\/p>\n\n\n\n The credit assessment agency said\u00a0its outlook had changed due to the impact of the Delta variant\u00a0<\/strong>of Covid-19, which has triggered lockdowns and heightened social restrictions, materially affecting Genting\u2019s leisure and hospitality operations in Southeast Asia.<\/p>\n\n\n\n Resorts World Genting<\/a>\u2018s casino has been closed since May. It closed all of its services <\/strong>in June, after Malaysian Prime Minister announced a nationwide Covid-19 lockdown.<\/strong> Until then, the resort\u2019s hotels, food and beverage outlets, shopping malls, retail outlets and other facilities remained open.<\/p>\n\n\n\n Maybank Investment Bank<\/a>\u00a0has predicted that Resort World Genting won\u2019t reopen its doors until November.<\/p>\n\n\n\n Meanwhile,\u00a0Yokohama may quit<\/a> Japan’s IR race after\u00a0Takeharu Yamanaka<\/strong>\u2018s victory in\u00a0mayoral elections<\/a>. Genting Singapore was\u00a0one of the IR contenders\u00a0<\/strong>and it was well-positioned to win the competition.<\/p>\n\n\n\n As for an operational recovery of Genting, S&P predicted the group\u2019s earnings before interest, taxation, depreciation and amortisation could\u00a0reach pre-pandemic levels only in 2023.<\/strong><\/p>\n\n\n\n Genting Singapore Ltd<\/a>\u00a0reported a\u00a0net profit of SGD88.2m (US$65m) for H1.<\/strong> That compares to a loss of SGD116.7m last year.<\/p>\n\n\n\n The company reported that\u00a0revenue was up 23.8 per cent to SGD554.8m<\/strong>\u00a0when compared to the first half of 2020, while gaming revenue in the first half of 2021 came in at SGD442.9m, up 61.4 per cent year-on-year.<\/p>\n\n\n\n The company attributed the growth to the temporary closure of Resorts World Sentosa from April 6 to June 30, 2020<\/strong> due to the Covid-19 pandemic.<\/p>\n\n\n\n Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) for the first half of the year was SGD276.1m<\/strong>, compared to SGD66.7m in the first half of 2020.<\/p>\n\n\n\n Despite the slight increase in casino sales thanks to domestic business after properties reopened, the casino operator remains highly dependant on international tourism<\/strong>. The company has started to develop creative events and promotions for domestic tourists.<\/strong><\/p>\n\n\n\n Analysts predict Genting Singapore\u2019s revenue<\/a> will reach SGD1.74bn (US$1.30bn) in 2021, and almost SGD2.11bn in 2022. In 2020, the company reported revenue of SGD69.2m (US$52.1m)<\/a>, down 89.9 per cent year-on-year.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" S&P has downgraded Genting Berhad\u2019s credit rating from \u201cBBB\u201d to \u201cBBB-\u201d amid a rise in Covid-19 cases in Southeast Asia.<\/p>\n","protected":false},"author":176,"featured_media":18062,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"S&P has downgraded Genting Berhad's credit rating to \"BBB-\" due to the severe impact of COVID-19 lockdowns in Southeast Asia on its leisure and hospitality operations, with pre-pandemic earnings not expected until 2023. Concurrently, Genting Singapore reported a H1 net profit of US$65m, a significant recovery from last year's loss, driven by domestic demand and prior year's closures, though its long-term outlook remains tied to international tourism and the uncertain Japan IR bid.","focusai_entities":"S&P, Standard & Poors Global Ratings, Genting Berhad, Resorts World Genting, Maybank Investment Bank, Takeharu Yamanaka, Genting Singapore, Resorts World Sentosa","focusai_location":"Southeast Asia, Malaysia, Yokohama, Japan, Singapore","focusai_target_profile":"ceo_executive (0.9), regulator (0.7), operator_casino (0.9), marketing_crm (0.7), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Capital Structure Impact","query":"How will the S&P credit rating downgrade for Genting Berhad impact its cost of capital and future financing capabilities for ongoing or planned integrated resort developments?"},{"label":"Regional Recovery Outlook","query":"Given the varied recovery timelines for Genting Berhad and Genting Singapore, what are the key macroeconomic and regulatory factors differentiating their operational outlooks across Southeast Asia?"}],"footnotes":""},"categories":[157,16333],"tags":[],"class_list":["post-21965","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-south-east-asia-news"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/21965","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\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=21965"}],"version-history":[{"count":4,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/21965\/revisions"}],"predecessor-version":[{"id":22001,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/21965\/revisions\/22001"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/18062"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=21965"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=21965"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=21965"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Genting Singapore reports net profit of US$65m for H1<\/h2>\n\n\n\n