S&P Global Ratings continues to expect Genting’s credit quality to remain commensurate with the current ratings of BBB-/stable.
PETALING JAYA: Genting Bhd
’s slowing operations are narrowing its rating buffer, according to rating agency S&P Global Ratings, who believe that operational recovery at Genting’s Singapore and Las Vegas assets will be key to the resort and casino operator’s credit quality, along with the pace and level of its investments.
Nevertheless, the ratings firm is expecting a gradual pickup in Genting’s earnings from 2026, pointing out that while a successful New York gaming licence bid could see the conglomerate incurring significantly higher capital expenditure, it will also generate incremental future earnings.
S&P Global Ratings is also estimating Genting’s ratio of funds from operations to debt to range between 22% and 24% through 2026, from 23.5% in 2024, following weaker-than-expected results in the first half of financial year 2025 (1H25).
The softer results were mainly due to its Singapore and Las Vegas operations, although S&P Global Ratings reckon the operating performance could gradually improve on the island republic as the resort’s expansion plan known as RWS 2.0 progresses.
“For Resorts World Las Vegas, volumes and margins could see some uplift as the company’s operational rebuilding is underway, following the management revamp and hiring of new hosts in 1H25,” added S&P Global Ratings.
In the meantime, it continues to expect Genting’s credit quality to remain commensurate with the current ratings of BBB-/stable, noting that the latter’s geographically diversified operations underpin resilience amid macroeconomic volatility.
The rating agency views Genting’s decision to pay a zero interim dividend as a lever to prioritise balance sheet management and support business needs, such as growth and paring down debt.
