RAM Ratings has downgraded Genting Berhad and Genting Malaysia Berhad’s outlooks from stable to negative.<\/p>\n\n\n\n\n\n\n\n
Malaysia.- RAM Ratings has downgraded Genting Berhad and Genting Malaysia Berhad from AAA to AA1. <\/p>\n\n\n\n
RAM said its outlook had changed from stable to negative due to the impact of the Covid-19 pandemic and related controls.<\/p>\n\n\n\n
According to RAM, the ratings reflect a high degree of uncertainty for both companies amid the ongoing pandemic. It does not expect Genting to see a return to pre-pandemic results for at least two years.<\/p>\n\n\n\n
RAM said: \u201cWe envisage severe revenue contraction for Genting (relative to 2019 levels) until at least 1H21. <\/p>\n\n\n\n
“Its earnings are only likely to be restored to pre-crisis levels in 2022 at the earliest \u2013 against our initial expectation that they would mostly normalise by 2021. Although the Group has implemented cost optimisation measures, these are unlikely to fully mitigate the impact on its earnings”.<\/p>\n\n\n\n
It added: \u201cAfter the plunge in fiscal 2020, Genting\u2019s operating profit before depreciation, interest and tax is envisaged to stay below pre-crisis levels in fiscal 2021 amid a tepid recovery in business volumes.\u201d<\/p>\n\n\n\n
According to analysts, Genting\u2019s net gearing ratio is projected to deteriorate around 0.35 times by December 2022. <\/p>\n\n\n\n
RAM said: \u201cIts credit metrics are no longer consistent with its previous AAA ratings”.<\/p>\n\n\n\n
\u201cThe negative effects of the Covid-19-induced economic slowdown on consumer income and wealth will constrain discretionary spending on gaming and leisure activities. <\/p>\n\n\n\n
“Concurrently, lingering fear of the coronavirus may affect travel plans and impede patronage. These repercussions are likely to persist even after the health crisis subsides and travel restrictions are relaxed.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
RAM Ratings has downgraded Genting Berhad and Genting Malaysia Berhad’s outlooks from stable to negative.<\/p>\n","protected":false},"author":2,"featured_media":9901,"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 downgraded Genting Berhad and Genting Malaysia Berhad's credit ratings from AAA to AA1, simultaneously revising their outlooks from stable to negative. This action reflects the severe and prolonged impact of the COVID-19 pandemic on their gaming and leisure operations, with pre-pandemic earnings recovery not anticipated until 2022 at the earliest. The downgrade highlights significant revenue contraction, deteriorating credit metrics, and sustained uncertainty in discretionary spending.","focusai_entities":"RAM Ratings, Genting Berhad, Genting Malaysia Berhad","focusai_location":"Malaysia","focusai_target_profile":"ceo_executive (0.9), operator_casino (0.85), investor_analyst (1.0), supplier_vendor (0.75), journalist_researcher (0.9)","focusai_suggestions":[{"label":"Impact on Capital Structure?","query":"How will this credit rating downgrade affect Genting Berhad's ability to secure future financing and its overall capital expenditure plans for ongoing or planned integrated resort developments?"},{"label":"Recovery Trajectory Analysis?","query":"What specific market indicators and operational metrics should be monitored to validate RAM Ratings' revised recovery timeline for Genting's pre-pandemic earnings, particularly concerning regional travel and discretionary gaming spend?"}],"footnotes":""},"categories":[160,163,16333],"tags":[19394,226],"class_list":["post-9896","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia-pacific","category-finance-news","category-south-east-asia-news","tag-genting-malaysia","tag-malaysia"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/9896","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=9896"}],"version-history":[{"count":5,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/9896\/revisions"}],"predecessor-version":[{"id":9915,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/9896\/revisions\/9915"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/9901"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=9896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=9896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=9896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}