KUALA LUMPUR: Moody’s Ratings has downgraded several companies under Genting Group, citing prolonged deleveraging pressures, weak earnings recovery and higher debt levels tied to the takeover offer for Genting Malaysia Bhd
(GENM).
In a statement, the rating agency said Genting Bhd (GENB) and Genting Overseas Holdings Limited (GOHL) were downgraded to Baa3 from Baa2, while Genting Singapore Limited (GENS) was lowered to Baa1 from A3.
Moody’s also cut the rating on GOHL Capital Limited’s guaranteed notes to Baa3 from Baa2.
The backed senior unsecured notes issued by GOHL Capital Ltd were also downgraded to Baa3 from Baa2. The notes carry a guarantee from GOHL and are supported by a Keepwell Deed between GENB, GOHL, GOHL Capital and the trustee.
All ratings carry a stable outlook, concluding Moody’s review for downgrade initiated on Oct 16, 2025.
"The ratings downgrade reflects GENB's already weak position due to prolonged deleveraging amid slower than expected earnings recovery, further strained by increased debt to fund its takeover offer for GENM and expected spending following the potential award of a downstate New York City (NYC) commercial casino license," Moody’s analyst Anthony Prayugo.
Moody’s said the stable outlook assumes continued earnings improvement at GENB’s Singapore and Las Vegas operations, minimal execution risk for its potential New York casino—which is expected to be earnings-accretive by the second half of 2026—and no further debt-funded expansion by the group.
On Dec 1, GENB completed its takeover offer for GENM, raising its stake by about 24%. The purchase will be financed mainly through debt, including RM3bil in medium-term notes.
On the same day, the New York Gaming Facility Location Board unanimously recommended Genting New York LLC (GENNY) for one of up to three downstate New York City casino licences, with final approval due from the New York State Gaming Commission by Dec 31, 2025.
GENNY’s US$5.5bil proposal includes US$1.1bil already spent and a minimum US$500mil licence fee, with the remaining US$3.9bil earmarked for phased capital expenditure and community commitments. It has secured US$925mil in committed financing, contingent on receiving the licence.
The plan calls for converting Resorts World New York City into a full casino with 4,000 slots and 250 tables by July 2026, potentially opening as early as March.
A further 150 tables are targeted by January 2027, with full ramp-up to 6,000 slots and 800 tables by January 2029, followed by 2,000 hotel rooms and a 7,000-seat arena by 2030.
“We estimate RWNYC could double its gross gaming revenue (GGR) to around US$2bil annually by 2027 when operations scale to 400 tables and 4,000 slots,” Moody's said.
Moody’s said RWNYC’s final bids indicated that its proposed tax rates of 56% for slots and 30% for tables should be reduced if rival licensees receive lower rates.
The agency added that RWNYC is likely to remain the only operating downstate New York commercial casino until around 2030, giving GENNY a first-mover advantage and near-term earnings upside.
“Beyond capital spending at GENNY, we expect GENB to incur annual capital expenditures of RM8bil in 2026 and 2027, up from our expectation of RM6bil in 2025. The increase will be driven by expansion works at GENS and its investments in a new floating liquefied natural gas (FLNG) project in the Kasuri block in Indonesia.
“We expect GENB's adjusted debt/EBITDA to rise to 4.9x in 2025 and 4.8x in 2026 before declining to around 4.3x in 2027.
“Deleveraging will be supported by earnings contribution from its downstate NYC casino, continued growth at existing gaming operations in Singapore, Malaysia, and Las Vegas, and LNG production starting in the second half of 2027,” Moody’s said.
It noted that GENB's standalone liquidity is excellent, supported by fees and dividend income from its operating subsidiaries.
However, GENB's debt maturity wall will build in 2027 when the US$1.5bil notes under GOHL Capital Limited are due for repayment in January 2027.
This will be followed by RM1.9bil of borrowings under Genting RMTN Bhd (RM400mil) and Genting Capital Bhd (RM1.5bil) - both wholly owned subsidiaries of GENB - that will be due in March 2027 and June 2027 respectively.
“We expect GENB will need to refinance at least a portion of those debt maturities over the next six to twelve months.”
