Credit assessment agency, Standard & Poors, expected revenues to drop 25% due to Coronavirus crisis. <\/p>\n\n\n\n\n\n\n\n
Malaysia.- Standard & Poors Global Ratings<\/strong><\/em> has published a report suggesting the Genting group<\/strong><\/em> will be hit hard by the Coronavirus outbreak, predicting a 25 percent revenue decline for the operator.<\/p>\n\n\n\n In a note delivered to the press, the credit assessment agency said the impact of the deadly virus is expected \u201cto be felt hardest\u201d in the quarter ending March. <\/p>\n\n\n\n \u201cWe expect a drastic drop in visitation to gaming properties, and those owned by Genting group are no exception,\u201d it stated.<\/p>\n\n\n\n Regarding Genting’s credit profile, Standard & Poor\u2019s said: \u201cThe negative outlook reflects our expectation that Genting will breach our downgrade trigger for the next 12 to 24 months, but its credit profile will recover quickly such that debt\/EBITDA falls below 2.0 times by 2022.\u201d<\/p>\n\n\n\n \u201cWe revised the outlook on Genting to negative to reflect our view that Genting\u2019s revenue and EBITDA will drop by 20 percent to 25 percent and 25 percent to 30 percent respectively in 2020 because of the ongoing Covid-19 outbreak,\u201d the report said.<\/p>\n\n\n\n The Genting group has a monopoly on casino gaming in Malaysia where it operators Resorts World Genting. It is also active in Singapore\u2019s casino gaming duopoly, through Genting Singapore Ltd.<\/p>\n\n\n\n \u201cIn Singapore, we expect revenue to decline by 30 percent to 40 percent in 2020, given our belief that the bulk of it is from customers in North Asia,\u201d explained Standard & Poor\u2019s report. <\/p>\n\n\n\n \u201cIn Malaysia, while we acknowledge that day trippers make up about 75 percent of visitors, we forecast weak consumer sentiment amid the virus fear to lower revenue by 20 percent to 25 percent in 2020.\u201d<\/p>\n\n\n\n The Genting group is also developing the US$4.3-billion Resorts World Las Vegas casino resort in Nevada, United States, expected to open in the summer of 2021. <\/p>\n\n\n\n According to Standard & Poors’ forecasts, Genting Bhd\u2019s credit profile should \u201cimprove materially from 2022,\u201d after the property opens.<\/p>\n\n\n\n \u201cWith the addition of Resorts World Las Vegas from 2021, we forecast revenue and EBITDA to reach record highs in 2022, and Genting\u2019s credit profile to improve materially such that its debt-to-EBITDA ratio will fall below 2.0 times and ratio of funds from operations to debt will stay above 45 percent sustainably thereafter,\u201d S&P noted.<\/p>\n","protected":false},"excerpt":{"rendered":" Credit assessment agency, Standard & Poors, expected revenues to drop 25% due to Coronavirus crisis.<\/p>\n","protected":false},"author":2,"featured_media":4422,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"Standard & Poor's Global Ratings forecasts a 25-30% revenue and EBITDA decline for Genting Group in 2020 due to the COVID-19 pandemic, particularly impacting its Malaysian and Singaporean casino operations. Despite the immediate downturn, S&P anticipates a material credit profile recovery by 2022, driven by the opening of Resorts World Las Vegas and subsequent record revenue and EBITDA projections.","focusai_entities":"Standard & Poor's Global Ratings, Genting Group, Genting Singapore Ltd, Genting Bhd, Resorts World Genting, Resorts World Las Vegas","focusai_location":"Malaysia, Singapore, United States, Nevada, Las Vegas","focusai_target_profile":"ceo_executive (0.9), operator_casino (0.9), investor_analyst (1.0), supplier_vendor (0.75), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Genting's Capital Structure Impact?","query":"How might the projected revenue and EBITDA declines impact Genting's existing debt covenants and its ability to secure future financing for ongoing projects like Resorts World Las Vegas?"},{"label":"Regional Market Recovery Divergence?","query":"Given the differing revenue decline forecasts for Malaysia and Singapore, what specific market dynamics or regulatory responses are anticipated to drive the regional recovery trajectories for Genting's integrated resorts?"}],"footnotes":""},"categories":[160,163,16333],"tags":[29,226],"class_list":["post-4407","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia-pacific","category-finance-news","category-south-east-asia-news","tag-casino","tag-malaysia"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/4407","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=4407"}],"version-history":[{"count":7,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/4407\/revisions"}],"predecessor-version":[{"id":777008548,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/4407\/revisions\/777008548"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/4422"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=4407"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=4407"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=4407"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}