{"id":777026261,"date":"2025-05-09T09:40:00","date_gmt":"2025-05-09T12:40:00","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=777026261"},"modified":"2026-04-21T23:07:49","modified_gmt":"2026-04-22T02:07:49","slug":"moodys-sees-genting-malaysias-empire-resorts-deal-as-credit-negative","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/moodys-sees-genting-malaysias-empire-resorts-deal-as-credit-negative","title":{"rendered":"Moody’s sees Genting Malaysia’s Empire Resorts deal as credit negative"},"content":{"rendered":"\n

Genting Malaysia plans to acquire the remaining 51 per cent of Empire Resorts shares. <\/p>\n\n\n\n\n\n\n\n

Malaysia.- <\/strong>Moody’s has deemded as credit negative Genting Malaysia<\/strong>‘s plan to acquire the 51 per cent remaining share capital of Empire Resorts for US$41m. The agency noted that that the payment will be entirely from internal cash reserves and highlighted concerns about the financial performance of Empire Resorts. <\/p>\n\n\n\n

It also noted that a US$40m debt owed by Empire to the Lim family’s investment company will be transferred to Genting Malaysia as a result of the deal. It added that Empire’s ongoing losses may lead Genting Bhd, via Genting Malaysia, to continue providing financial support. Empire has already received about US$750m in support from Genting Malaysia and reported a net loss of US$59m in 2024.<\/p>\n\n\n\n

Empire Resorts operates three businesses in New York: the Resorts World Catskills casino complex, Resorts World Hudson (a casino with video lottery terminals), and Resorts World Bet (a mobile sports betting service).<\/p>\n\n\n

\n
\"Empire
Empire Resorts.<\/figcaption><\/figure>\n<\/div>\n\n\n

Meanwhile, CreditSights <\/strong>has maintained its “outperform” rating for Genting Malaysia but also warns that the transaction could increase Genting Malaysia’s debt levels and raise concerns about related-party transactions.<\/p>\n\n\n\n

Genting Malaysia reports net loss for Q4<\/h2>\n\n\n\n

Genting Malaysia\u2019s fourth quarter revenue was flatish at RM2.68m (US$604.3m) while adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) was RM180.6m (US$41m), down 78.6 per cent year-on-year<\/a> and 86.2 per cent quarter-on-quarter<\/a>. The decline was mainly attributed to net unrealised foreign exchange translation losses on the group\u2019s USD-denominated borrowings.<\/p>\n\n\n\n

The company posted a loss before taxation (LBT) <\/strong>of RM368.2m and a net loss of RM485.6m. Excluding the effect of the unrealised foreign exchange translation, the group would have reported LBT of RM11.3m and a net loss of RM128.7m.<\/p>\n\n\n

\n\t\t\tSee also:<\/span><\/p>\n
\n\t\t\t\t<\/p>\n

\n\t\t\t\t\tSee also:<\/span> MGM China announces cash dividend<\/a>\n\t\t\t\t<\/p>\n<\/p>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"

Genting Malaysia plans to acquire the remaining 51 per cent of Empire Resorts shares.<\/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":"Genting Malaysia plans to acquire the remaining 51% stake in Empire Resorts for US$41m, a move deemed credit negative by Moody's due to the use of internal cash reserves, Empire's ongoing losses, and the transfer of a US$40m related-party debt. CreditSights maintains an \"outperform\" rating for Genting Malaysia but highlights concerns regarding increased debt and related-party transactions, while Genting Malaysia reported a significant net loss for Q4, primarily due to foreign exchange translation losses.","focusai_entities":"Genting Malaysia, Empire Resorts, Moody's, Lim family, Genting Bhd, CreditSights, MGM China","focusai_location":"Malaysia, New York","focusai_target_profile":"ceo_executive (0.9), regulator (0.7), compliance_legal (0.7), operator_casino (0.8), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Empire Resorts' Turnaround?","query":"What specific operational and strategic initiatives does Genting Malaysia plan to implement to reverse Empire Resorts' sustained losses and improve its financial performance post-acquisition?"},{"label":"Debt & Governance Impact?","query":"How will the transfer of the US$40m Lim family debt to Genting Malaysia impact its balance sheet and debt covenants, and what are the governance implications of this related-party transaction?"}],"footnotes":""},"categories":[163,16333],"tags":[29,24728,19394],"class_list":["post-777026261","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance-news","category-south-east-asia-news","tag-casino","tag-empire-resorts","tag-genting-malaysia"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777026261","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=777026261"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777026261\/revisions"}],"predecessor-version":[{"id":777026286,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777026261\/revisions\/777026286"}],"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=777026261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777026261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777026261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}