RAM Ratings maintained negative outlooks on Genting Berhad and Genting Malaysia despite keeping their credit ratings unchanged.<\/p>\n\n\n\n\n\n\n\n
Malaysia.- Genting Berhad is expected to see its net debt rise by roughly 53 per cent<\/strong> by the end of 2028 as it funds major expansion projects, according to a recent assessment by RAM Ratings<\/strong>. The rating agency forecasts that the group’s net debt will increase from MYR22.94bn (US$5.6bn) at the end of 2025 to MYR35bn (US$8.6bn) by 2028. To support its pipeline of developments, Genting’s annual spending on capital projects and new investments is projected to double, reaching an average of MYR10bn (US$2.5bn) per year over this period.<\/p>\n\n\n\n Although RAM Ratings kept credit ratings unchanged for both Genting Berhad and its subsidiary Genting Malaysia, it maintained a negative outlook due to the growing debt burden and sluggish operational performance. The company raised US$1.25bn in April and plans to raise an additional MYR1.25bn (US$307m) through a new share issuance expected to close in early 2027. However, analysts said these equity measures will provide only limited financial relief<\/strong> while capital spending remains high, raising the possibility that the group may need to sell more shares or trim dividend payouts.<\/p>\n\n\n\n RAM noted that stronger revenues from flagship properties like Resorts World New York City and Resorts World Sentosa in Singapore, along with lower slot machine taxes in New York and new income from oil and gas ventures, should help absorb some of the financial pressure. Despite this, the agency cautioned that Genting could face a credit rating downgrade if major projects suffer delays or fail to generate projected earnings, though strong cash reserves and solid access to capital markets currently offer a buffer against these risks.<\/p>\n","protected":false},"excerpt":{"rendered":" RAM Ratings maintained negative outlooks on Genting Berhad and Genting Malaysia despite keeping their credit ratings unchanged.<\/p>\n","protected":false},"author":680,"featured_media":777046505,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"RAM Ratings has maintained a negative outlook on Genting Berhad and Genting Malaysia, despite stable credit ratings, citing a projected 53% increase in net debt by 2028 to fund major expansion projects. The agency forecasts annual capital spending to double to MYR10bn, with equity measures offering limited relief against the growing debt burden and sluggish operational performance. While stronger revenues from flagship properties and new ventures are expected, a credit rating downgrade remains possible if projects underperform or face delays.","focusai_entities":"Genting Berhad, Genting Malaysia, RAM Ratings, Resorts World New York City, Resorts World Sentosa","focusai_location":"Malaysia, New York, Singapore","focusai_target_profile":"ceo_executive (0.9), operator_casino (0.8), investor_analyst (1.0), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Debt Servicing Capacity?","query":"What is the projected debt service coverage ratio for Genting Berhad post-2028, considering the anticipated MYR35bn net debt and new revenue streams?"},{"label":"Projected Earnings Sensitivity?","query":"What is the sensitivity of Genting's credit rating to a 10% variance in projected earnings from key expansion projects, particularly Resorts World New York City and Sentosa?"}],"footnotes":""},"categories":[157,16333],"tags":[25068,24657,226],"class_list":["post-777049452","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-south-east-asia-news","tag-debt","tag-genting-berhad","tag-malaysia"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777049452","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\/680"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777049452"}],"version-history":[{"count":2,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777049452\/revisions"}],"predecessor-version":[{"id":777049458,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777049452\/revisions\/777049458"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/777046505"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777049452"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777049452"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777049452"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}