SINGAPORE: Fitch Ratings has affirmed Malaysia-based gaming conglomerate Genting Berhad
's (Genting) Long-Term Foreign Currency Issuer Default Rating (IDR) and senior unsecured rating at 'A-'.
In a statement Fitch said it also affirmed the Long-Term Foreign and Local Currency IDRs on Genting's 52%-owned subsidiary,
Genting Singapore PLC (GENS), at 'A-' and its SGD 2.31bn perpetual capital securities at 'BBB'.
The Outlooks for Genting and GENS are Stable. Genting's ratings reflect its continued strong market position in the Malaysian and Singaporean gaming markets and meaningful diversification in the plantations and energy sectors.
The ratings also reflect the company's conservative financial policies. GENS's ratings are equalised with Genting's due to the strong strategic and operational ties between the two entities, with GENS contributing about 45% of Genting's consolidated EBITDA in 2014.
Sharing of brands and a history of providing financial support are also key attributes for the equalisation of the ratings.
KEY RATING DRIVERS Moderate Weakness In Gaming: Genting's flagship gaming business has been moderately affected over the last 12 months by a combination of lower volumes and win rates across its properties.
GENS' gaming and non-gaming revenues declined due to the continued weakness in the premium gaming market. In Malaysia, though gross gaming revenues (GGR) increased, lower win rates in the premium players business, and higher payroll costs and costs relating to the premium players business resulted in a lower EBITDA. - Reuters
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