{"id":35244,"date":"2022-11-09T12:55:57","date_gmt":"2022-11-09T15:55:57","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=35244"},"modified":"2026-04-23T03:08:35","modified_gmt":"2026-04-23T06:08:35","slug":"fitch-genting-malaysia-to-reduce-debt-gearing-by-2024","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/fitch-genting-malaysia-to-reduce-debt-gearing-by-2024","title":{"rendered":"Fitch: Genting Malaysia to reduce debt gearing by 2024"},"content":{"rendered":"\n

Fitch expects a robust recovery in Genting Malaysia’s markets and lower capital spending.<\/p>\n\n\n\n\n\n\n\n

Malaysia.- Fitch Ratings<\/strong> has reported that it expects Genting Malaysia Berhad<\/strong> to reduce its debt gearing against EBITDA from 4.2x in 2021 to 3.2x by 2024. The agency says the deleveraging will stem from the group\u2019s economic recovery in the markets where it operates and lower capital spending.<\/p>\n\n\n\n

Fitch analysts Akash Gupta<\/strong> and Shiv Kapoor <\/strong>stated: \u201cFollowing the lifting of pandemic-related restrictions in Malaysia in April 2022, recovery should be aided by a limited reliance on foreign visitors and additions to the new Genting SkyWorlds theme park by fourth-quarter 2022.”<\/p>\n\n\n\n

Genting Malaysia’s revenue from Malaysia, which accounted for 70 per cent of its pre-pandemic consolidated total revenue, is expected to recover to over 75 per cent of 2019 levels this year and to around 95 per cent by 2023, according to the rating agency. The group also runs casinos in the United States, the Bahamas, the United Kingdom and Egypt.<\/p>\n\n\n\n

Genting Malaysia<\/a> <\/strong>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)<\/a> as a result of the eased travel restrictions in the country. <\/p>\n\n\n\n

In September, analysts upgraded Genting Malaysia\u2019s long-term Issuer Default Rating (IDR)<\/a> from \u201cnegative\u201d to \u201cstable\u201d. Fitch stated that Genting Malaysia saw a stable outlook driven by a strong recovery of gaming revenue, particularly in Malaysia and the US after Covid-19 restrictions were eased. The credit rating agency also affirmed Genting\u2019s issuer default ratings at BBB.<\/p>\n\n\n\n

Lower expectations for Genting Singapore<\/h2>\n\n\n\n

As regards Genting Singapore, analysts at Fitch Ratings stated: “We expect a slower \u2013 but steady \u2013 EBITDAR recovery in Singapore, than in Malaysia and the U.S., due to a higher dependence on foreign visitors and the hit from an increase in gaming tax from second-quarter 2022.”<\/p>\n\n\n\n

The ratings agency added that Genting Singapore\u2019s 2022 revenues are likely to remain 35 per cent below pre-pandemic levels. <\/p>\n","protected":false},"excerpt":{"rendered":"

Fitch expects a robust recovery in Genting Malaysia’s markets and lower capital spending.<\/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":"Fitch Ratings projects Genting Malaysia Berhad will significantly reduce its debt gearing against EBITDA by 2024, driven by robust market recovery in Malaysia and the US, coupled with lower capital expenditure. The agency affirmed Genting's BBB Issuer Default Rating with a stable outlook, citing strong gaming revenue recovery post-pandemic. Conversely, Genting Singapore faces a slower EBITDAR recovery due to higher foreign visitor dependence and increased gaming tax.","focusai_entities":"Fitch Ratings, Genting Malaysia Berhad, Genting Singapore, Akash Gupta, Shiv Kapoor","focusai_location":"Malaysia, United States, Bahamas, United Kingdom, Egypt, Singapore","focusai_target_profile":"ceo_executive (0.9), regulator (0.7), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.75), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Debt Deleveraging Strategy","query":"What specific capital expenditure reductions and operational efficiencies are projected to drive Genting Malaysia's debt gearing reduction from 4.2x to 3.2x by 2024, and how sustainable are these measures post-recovery?"},{"label":"Regional Recovery Disparity","query":"Beyond foreign visitor dependence and gaming tax increases, what other regulatory or competitive factors contribute to the anticipated slower EBITDAR recovery for Genting Singapore compared to Genting Malaysia and the US operations?"}],"footnotes":""},"categories":[157,16333],"tags":[19394],"class_list":["post-35244","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-south-east-asia-news","tag-genting-malaysia"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/35244","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=35244"}],"version-history":[{"count":4,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/35244\/revisions"}],"predecessor-version":[{"id":35270,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/35244\/revisions\/35270"}],"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=35244"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=35244"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=35244"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}